RE: Buys29 Mar 2019 22:34
At the end of the day you need to pass 1/2/4 resolutions to compete and fund an RTO.
ORDINARY RESOLUTIONS
1 - Needs to pass in order for them to raise money.
2 - It needs to wind down the old company and become a shell - pretty obvious.
3 - Its a name change who really cares, no reason to vote against it, easier to vote for it.
4 - Needs to pass - again in order for them to raise money.
even with alternative financing - Bonds / CLNs / etc they will need headroom in the share authorization for security / warrants, bribes, employee incentives and to entice investment.
Dont screw yourselves before its started by blocking the fund raises, it looks like you have a potential investor with potentially good assets that they have actively tried to float / offload / sell off / raise capital against / develop.
Many shells have failed because they cannot find a suitable company to RTO into, most fail because of funding you have both here on the table, quite often shells delist after the 12 months shell time limit (6 months tradeable, plus 6 months while suspended) and old holders end up with nothing.
The reason they have picked PSL as the shell target is because of its carried tax losses, if you vote against them raising capital they will move on to the next shell.
You will be voting against the conditional placing already announced, if the new investors dont build up a high enough stake here the project could become unviable for them and they walk away.
Once the RTO is sorted and the company is yours then you can vote next year to restrict enlarging the share issue limit, and to require a vote to pass any new funding / share issues.
If the project is what some have predicted and you are talking an RTO of a multi million $ project take it.
if they did walk away a few hundred k loss for the new investors here wont matter to them, but when they sell off of their shares it will to every PI left.
PS : when they consolidate the shares as part of the RTO the share authorization limit will change inline with it.
Dont screw yourself, ive seen it happen with shells in the past.
AND there is nothing to say that they wont actually raise the bulk of the funding at a much higher price to the current placing prices once the project is announced - hence why they are building up big stakes here already.
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