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Good post Ian_
Penultimate paragraph needs a little bit of tweaking
"When the Sale Price is announced it will underpin the MCap to at least that amount, and then those who don't want to receive a dividend can sell the shares carrying the dividend before the record date cut-off.
Seem a very fair way of doing things to my way of thinking?"
Very fair and agreed. GLA despite the crap SP
"Monty everyone said that about the egm that it was a ploy to show buyers they aren’t raising. But a few weeks later they raised money."
Who is everyone? I didn't assume that there would be no dilution. At the same time, I didn't necessarily anticipate that there definitely would be, but I was happy to believe that, if there was, it would be value-accretive. In due course, getting Nyud (and the other Rosgeos) up and running will unquestionably be worth the relatively small recent dilution. They only used part of the authority, too, so it's clear that they take shareholders seriously. There's no reason to believe they'll immediately issue 500m shares any time soon.
"Seem a very fair way of doing things to my way of thinking?"
Agree completely Ian. Best way to deliver value to those who want to get off the train and those who want to stay on it.
Morning Montmuzard,
A nice post of yours and I'm in the same camp as you regarding the 500m shares, the BOD would not want to dilute any shareholder!
The BOD know that if they were to start selling their shares it would decimate the share price in a flash!
They, if they can get the sale of assets or the company across the line, know that the fairest and safest way to do it is to pay each and every shareholder a dividend, that way the day to day share price fluctuations play no part.
When the dividend amount is announanced it will underpin the share price to at least that amount, and then those who don't want to receive a dividend can sell the shares carrying the dividend before the record date cut-off.
Seem a very fair way of doing things to my way of thinking?
TMS - You should be renamed The Demented Parrot because you just keep squawking the same old sh ! t e. Give it a rest a go fishing !!!!!!
It wasn’t raised for a laugh tho was it, it defo strengthened the company in a few ways. Adding much more potential value than they raised.
Literally the only point of the EGM was to be able to raise cash PDQ. Anyone who was surprised by the fact that EUA did in fact raise cash should be radically reassessing their investment strategy.
Monty everyone said that about the egm that it was a ploy to show buyers they aren’t raising. But a few weeks later they raised money.
Even if they could take shares, it's hard to see why they would, and it would likely be counter-productive. For one thing, they would be diluting their existing holding. There would also be no benefit to the company in terms of generating income - the whole point of dilution - if they just grabbed them rather than selling them. It would also seriously annoy existing shareholders, potentially even leading to a big sell off. It would be pretty out of character given their behaviour up to now.
I remain convinced that the 500m is primarily a show of strength to demonstrate to suitors that they will never run out of cash. If there is to be one, any raise will take place after the special dividend is paid: this will allow the board to return as much of that as possible to existing shareholders (including themselves) in EUA 1.0, giving everyone the option of a lucrative exit. Then, at some point, they'll issue a few hundred million more shares to generate revenue for EUA 2.0 and the message will be that, if you want to retain the same share in the company going forward, you have to pony up some of your winnings. Perfect outcome really: everyone is entitled to get off the bus with a sizeable wedge, or, if they have the patience, stick a bit more in for the cycle to be repeated down the line.
Nope I doubt it. Looks like a few leaving the boat…
Thanks Tc. It would be an extremely positive sign if they did that now then but are they allowed to if still under NDA restrictions?
Roger they can’t take shares. That’ll be insider trading as they know what’s going on. Though they can exercise their remaining options.
Could the BOD award themselves a hefty portion of the extra 500m shares that are about to be voted on?
I know they already have ‘significant’ skin in the game but if they knew an asset sale was about to result in a divi of say 50p then that would net them all a fair extra wad of cash…
They could argue it’s just reward for their achievement in putting together a deal which has taken much longer than anyone expected.
Fully expect people to be brutally honest. Plus çe change.