RE: PRD Leaky28 Jun 2023 11:57
All quite tricky isn't it. waiving the rights allows the board to issue lots more shares, in a much quicker way if they suddenly need the funds - but of course some ceos/boards enjoy the use for their lifestyle payments for a few more years!
vast agm waived the preemptive rights, to allow them to issue potentially 48% more shares, to cover the debt payments if they do not get the diamonds anytime soon - a hail mary to keep lights on if the debtors demand payment before the diamonds arrive
conversely prem did not get the motion passed at the agm, so if canmax do decide to demand payment - prem will not be able to issue the shares to pay the debt off, makes it harder for prem to keep the lights on without finding a white night 3rd party deal ( I imagine canmax used their 13% to vote against this to try and strenghten up their poker hand)