Conspiracy theories Pt217 May 2019 22:47
The open offer allows every shareholder to apply for excess shares. My prediction is that the excess will either be distributed as a percentage increase if applied for. For example if i had 1 million shares and applied for 2 million shares, they would give me lets say 1.2 million shares for ease (1mil guaranteed 200k excess or 20%). So the larger the individual shareholder is, the more of a benefit you will receive from the excess, and who are the ones a the ones who would benefit the most from this? Now lets move on to what i labelled as 2. of RNS, 1st May. The Directors wish to be unconditionally authorised to allot 1,759,632,974 shares, or an additional 14.1% of the enlarged shares if this is to pass, this will more than likely go to Antos/Peterhouse/Directors (in what percentages i have no idea). This will not happen ASAP as Antos may wish to buy shares on the open market around when the open offer shares will be distributed. I believe this day will result in a decent size tanking of the share price to even as low as Richieboy said but not for reasons he believes to be the case.
Even though people think that the open offer has already been accounted for in the current share price, this drop was based off news alone. The current number of shares still sits at 5,332,221,134. When this number increases to 10,664,442,268, basic economic theory states that an increase in supply will result in a fall in price due to an increase in quantity. At this point a massive number of shares will be sold as many people love quick profit and following people will lose their nerve. Following this, a mass of buying from Antos will increase his current holding, therefore sparking another RNS of a change in holdings. This will lead to a rapid spike in the price of shares as people will follow like sheep under the information released.
So Antos will have his Larger percentage of shares in the region of 0.0015-0.003, but there is little risk involved as it will shoot past purchase price within the day of an RNS. Now Antos has his original 758 million, plus whatever he buys open market, and his open offer plus any excess he might receive. Fast forward possibly a week or month who knows, but those 1,759,632,974 of unconditional shares, will now line the pockets of Peterhouse/Directors/Antos at a price that is totally unknown, so well could be well below market price and even the open offer price.
This now allows Antos to reap the benefits of having such a large holding in a company that looks to be performing an RTO into a large gold firm. Directors and Peterhouse are compensated for their work without having to buy from the open market which they are not allowed to do under Insider trading laws.
FINISHED
Warnings:
These is a loosely woven story of RNS's and my own opinion.
I am a shareholder that obviously carries biases as i wish for this share to succeed and make me rich in short
I am not a Financial adviser, but do study Financial economics