RE: So that equity swap is Canamx buying5 Dec 2024 12:44
Jaglith, Canmax voted down a very similar resolution on the EGM 12th Nov 2024, that is less than a month ago. Why would Canmax suddenly change their mind, no indication that’s happening.
If Canmax wants Zulu, the easiest and cheapest way is to vote down the resolution on the upcoming EGM. PREM will be left with the option to do an open offer to raise funds to pay the $6.4m of payables which are overdue. Its impossible for PREM to raise $6.4m from an Open Offer when the largest shareholder is against it and no real investor would underwrite this.
The failed open offer will result that PREM will be bust, the company may even be bust before conducting an open offer. Canmax can than go to Zimbabwe regulator and PREM bankruptcy administrator and ask for the key to Zulu. As the Zulu sub owe Canmax +$50m in prepayments.