Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
That’s completely correct, AndytheMKDon.
But if the market maker managing Riverfort’s sell today hadn’t had a sell order, the SP would probably have gone higher on those buys.
And if there aren’t natural buyers tomorrow, or the next day, they’ll have to drop the SP to attract buyers to get the shares sold that Riverfort want to get rid of.
It’s a 1.9m share overhang. And in 3 months there will be another £300K worth. And 3 months later a further £300K.
A) the maximum amount deposited and outstanding being not greater than 10% of the market capitalisation of the Company at the time of the deposit.
So that’s saying Riverfort won’t lend any more money if they are owed more than 10% of the company’s market cap at the time. The maximum Riverfort can be owed by then is £2.6m, assuming they haven’t sold a single share. So they are concerned about the market cap dropping from the current £65m to below £26m.
And realistically, they will be selling throughout. So it’s actually a much lower market cap they are concerned about.
Food for thought…