RE: 2m10 Mar 2022 17:42
On the subject of Duferco it is very difficult to know whether or not they are selling in the absence of hard evidence, and I am not referring to the 2 million trade but more generally.
Let’s remember that they disposed of the entire holding of their first conversion within a year and as far as I am aware they are not first and foremost a financial investment company. The current share price is higher than their conversion price and if they need cash any sold now would be at profit.
My understanding is that a very large sell order on AIM that may take a long time to fully dispose of only has to be reported on final completion.
It is therefore quite possible that Duferco are in the process of selling some. That doesn’t mean that there aren’t other large sellers too but I think it would be premature to rule out Duferco as at least one of the sellers.
And don’t forget that they agreed to take a larger proportion of payment in shares than was originally agreed, thus amending their expected inflow of cash, whilst at the same time removing any time restrictions on selling. Why would they do that unless they intended to quickly sell at least some of their holding.
This arrangement would suit both BMN who had to repay less cash and Duferco who could recover some cash by selling the shares, with the added bonus that they may be able to sell at greater than the 10p conversion rate, which has indeed transpired.
How much difference does it make who is selling? Perhaps not much except that if Duferco do want to exit as they did with the first conversion then the quicker the better as far as I am concerned. Time is not on my side!
The good news (and it is very good news) is that whoever the sellers are those shares are being hoovered up by the market and the sp 20 and 50 ma rising.
The above is only my opinion and time will tell how accurate or otherwise this speculation is. And quite frankly there are plenty of things in life more important to worry about.
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