George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Agree BigDave….. but being slow off the mark they are nearly a million dollars up already on yesterdays close !
I hope they slowly sell all the way up to $15 and we all make loads on the back of positive sentiment.
Have a good weekend everyone. Monday should be fun
( CDT currently at $5.7)
Krazy:
We invested roughly£2.5million in AZ1656 drug via St.George St. Capital.
We paid CDT £400k for a put option whereby they buy back our rights for a cut ( I think 8%) of a commercial deal on this drug for use in COVID. They would do this by issuing us shares in CDT.
VELA don't have to ( and as far as we know haven't yet) exercised this option....hence the speculation as to why not.
If they exercise today and sold all the allocated shares they would get approx £3.75 million which would be a handy profit on the original investment.
The could hold for a much higher price, or wait for a commercial deal which 8% of which may be many more millions.
We don't know ( and suspect neither do the BOD)
An option maybe knowing the viability and closeness ( or not) of a commercial deal on AZ1656.
If that is around the corner it may be more valuable. If there was no deal possible why would CDT want to buy back the rights/royalties?
I agree...the $5-15 limits are just to set the min/max range for shares that can be allocated.
I can see the point in waiting when the share price was in freewill as it would have become a live asset at a considerable loss. Now we are up ( on our initial investment) if we had the full allocation of shares so it seems like a good time . But as I said yesterday it may have happened yesterday...hence the big volatility and they may be waiting for US open to confirm as these things take 24 hours to go through.
I don't think it is the case that the WVAP has to be between $5 and $15....it is just that the allotment of shares can't be of an equivalent price less than $5 or more than $15 in relation to shares allocated towards the value of the option. So if we had exercised when the market price was $1. we would have received 976,000 shares being the value of the option divided by $5 dollars ( the minimum strike price).
This was to stop us getting circa 5 million shares if the WVAP had been $1
CIZ had to exercise at $10 per share being the agreed set price. It had already dropped by 50% when they exercised so it didn't actually need to be $10 to do so....
You’re all worrying too much ! Mid way through yesterday afternoon the share price was half what it is now . We’ve got until Feb to exercise and will get close to , if not all, of our max allocation if we exercise now .
We may have exercised already today .