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Bunco - you’re right, my mistake. It looks the UK market is currently valuing Stel shares at just underneath the ‘absolute worst case scenario’ price of NWF dropping to 0.15c upon completion of the deal. I can’t see that happening myself as the ASX is not prone to wild swings in SP like can occur in AIM
I'm no expert here BTW. This started off as 12.77p... happy days then quickly became 9.77p still good now all of a sudden there is 7.4p being quoted. Lol The markets stuck this around 6p for weeks now. Surely someone here must know what they know lol...
I agree, I don't think that it will go to A$0.15 I think your figure of A$0.20 is realistic. Given the number of new shares available as a result of all the funding and share issue for STEL shareholders, i'm not sure that the A$0.223 they seem to be quoting as a worst case scenario is actually that. Still as you say, A$0.20 is still 30% - 40% on current levels.... Stick or twist... hmm
Apologies Bunco, the entitlement offer is indeed at A$0.15 but the additional A$7 million placing is at A$0.20. Based on the fact they calculated the theoretical ex-rights price at A$0.223 I'd say that the entitlement offer price of A$0.15 is really the very very bottom we could expect for the price and in my opinion it will be closer to the placing price of $A0.20 but we shall see. Either way, I'm making a little bit of profit or a lot of profit for waiting a few weeks which seems good value to me.
Is the price the existing shareholders are being offered shares at as part of the fundraiser not $0.15aus.... "NWF has also announced the closing of the NWF Rights Issue to raise a further A$30 million through the issue of 200,231,668 NWF Rights Issue Shares at A$0.15 per share." If we fall to around this price then there is little margin on current STEL share price. Hardy78, you have failed to take in to account in your calculation that we will only be getting 0.7622 of a Newfield share for each STEL share we have, therefore, if Newfield price was at 17.29c then that would equate to as price per STEL share of around 7.4p. I had freed up some cash this morning and was ready to buy before running back through the detail. At current prices I'm not sure it's worth it.
Also, to not make any gain whatsoever from buying in today at the current price 6.45p the NWF share price would need to fall to below $A0.15. Please correct me if any of my calculations are off.
To add to this if it were to drop to the placing share price of A$0.20 rather than the ex rights price that would still equate to roughly 8.76p per STEL share so we'd still all be in for a nice payday :D
The theoretical ex-rights price used in the offer RNS which takes account of effect of financing was A$0.223 per share. Obviously this is just a calculation and share prices can go up and down but also consider placing price was A$0.20 so wouldn't expect any lower than that really.
To meet the minimum offer value of 9.77p, equivalent NWF price needs to be 17.29c at an exchange rate of �1 to $1.77 AUS
what would the consolidation effect on the new NWF stock be after completion? 1 STEL = 0.7622 NWF NWF last close AS$0.24
in terms, of options i mean... as I have not yet opened an IG account.
ah, thats good to know. never been in this situation before. Lets just hope X-O get those letters out sharpish.
TBH, I think whatever way PI's vote is pretty much irrelevant based upon the size of the Irrevocable Undertakings. It's just a formality!
Mukflash - if you don't return the vote then it just increases the power of those who have voted. In this case we already have over 50% in favour and hence not voting will just increase that figure so I wouldn't worry about it.
what would happen in the case that I do not return the forms. would it class as just abstaining?
mukflash - I'm afraid you'll have to take that up with X-O!
isn't that a bit of a tight deadline returning a form I haven't received by Tuesday?
Mukflash - you just posted that your broker X-O is sending out letters. I'm presuming that will include a voting form to approve/decline the deal. I know that HL carry out all their Corporate Actions via online voting.
yes, a nominee account. and I have not received any message. are my shares at risk?
Mukflash - where do you hold your shares? A nominee account (such as HL) will have sent you a message asking you to carry out a Corporate Action and to vote whether you support the sale or not.
Also, I have just phoned X-O who I share deal with, and they said there are physical letters going out to shareholders of STEL about there options shortly.
what does that bit in the RNS mean about shareholders submitting a BLUE form of proxy, and WHITE form of proxy by a deadline of 17 April 2018.... Does this apply to us?
Good news, that's one of the final remaining risks ticked off the list.
Just wondering why I can't seem to find an up-to-date share price. Was wondering if trading has been suspended while they deal with the fundraising etc?