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https://siriusminerals.com/downloads/agm-notice-2019/
SPECIAL RESOLUTIONS Dis-application of pre-emption rights 15 & 16
SXX's Articles of Association:
https://siriusminerals.com/site/assets/files/3798/sirius-minerals-articles-of-association.pdf
"As far as I am aware pre-emotion rights would preclude raising more than current market cap ie £235m which is way below what is neeeded.Please explain how more cash can be raised via new share issue without the express consent of existing shareholders"
Companies often give their Boards constent to issue new shares, usually at the AGM, if there's a restriction of those rights it will either be in the Articles or last AGM resolutions. Each can be amended via an EGM.
There are restriction in places on companies becausee of the Companies Act, but not on the amount of shares that can be issued it the powers are granted.
The relationship between the market cap and amount of shares to be issues isn't an issue as long as the Board has the relevant powers.... and there's an appetite for them.
As far as I am aware pre-emotion rights would preclude raising more than current market cap ie £235m which is way below what is neeeded.Please explain how more cash can be raised via new share issue without the express consent of existing shareholders
"Only option left is likely to be cash for equity"
Convertable is another option, but they've already been down that path. A convertable gives the debt holders control of the asset and then ditultes the existing holders if the business scrapes through.
If there's a future you'd want first call on the asset, something shareholders don't have, then take advantage if there is future equity value creation. That would of course highly dilute existing holders.
A debt issue isn't going to that attractive as it doesn't offer any income and the profile of it would be awful.
It's a money pit in every sense of the word.
As the business runs out of cash in just over 5 months, why wouldn't a trade buyer just tough it out and buy when the asset is competely distressed. Unless the cash/debt come from exiting shareholder, I just can't see it myself.
It's quite a conundrum.
That does not explain how ? Buy shares in the market ?
And how would this partner acquire the shares ?
...it's almost like someone wants to suppress the share price
".. to go private then 75% of shareholders must vote for this and the share price would then be significantly higher than now"
...Unless th echoice is between Adminisatration (nothing) and 1p a share (something).
I'm betting on a government intervention. But i'll probably lose my 25k bet
I cannot believe how ignorant and in fact stupid some posters are.
CF has said Sirius there is no intention of SXX going private and indeed it is not in his power so to do.If a purchaser wished to buy sufficient shares so that is technically possible to go private then 75% of shareholders must vote for this and the share price would then be significantly higher than now,by definition,so existing shareholders would therefore be sufficiently rewarded.So what on earth is the fuss about !
Can't believe how stupid Chris has been.
Responding to an article in The Daily Mail via one in a local gazette doesn't really cut it as the sp shows.
What is needed is an RNS.
Talk about shooting SXX and all its investors in the foot - unbelievable.
I take what the gazette print with a pinch of salt at the best of time, but they must be desperate if they are now quoting LSE, as we all know there are a lot of fools and individuals with ulterior motives on here. Obvioulsy its a quiet day in terms of real news.