No specifics, but, definite concerns for SHs who they realize have been badly dudded. Will be a CR to SHs and from what I can read between the lines, will probably be a straight out pro-rata offer plus a top up. Clearly the SP at that time will determine the price and the expected amount to be raised. No way of telling yet. They have "all of these issues as priorities" but the only "detail" that they are able to give at the moment is that it won't be until late Jan early Feb.
That could create a bit of a dilemma re "tactics" in the meantime. The company will want the SP to be as high as possible, but, also consciously wanting to make it attractive enough for SHs to pay up and get a bargain at the same time.
This is where you would expect these so called whizz kids to be at their best, but, I hope that it is "imaginative" and not a bland, here it is, trust us, further kick in the guts. Frankly, IMO they will get NO "trust us" money and really have but one choice IF they are fair dinkum concerned about the SH, and that is to make the offer price VERY appealing, like, an offer that we can't refuse.
But, again, until they feed this info into the market, we are all playing in the dark and that, clearly, is intolerable. The cynic in me would suggest that they will "support" the SP as high as doesn't look obvious, but, that is just conjecture.
Still boils down for me that management are genuinely trying to make this company into a solid gold producer, but, it will take more cash and time. Consequently, the only people that it will attract for the time being will be those that DO have faith in them, are patient, are prepared to top up with a fairly priced CR and ARE prepared to TRUST them. Those same people could still be taking advantage of these low prices to average down, or, take their chances that the CR will be at a lower figure and are prepared to wait and top up at a cheaper price. Frankly, couldn't imagine NEW buyers coming in while all this conjecture remains unanswered, so, those averaging are the only logical buyers for the foreseeable future, at least until the CR details are announced. That seller @ .125 might have to be prepared to wait much longer, or blow more than that $50grand if he wants out earlier!!Would love to see that. Why pay .125 when in just 2 weeks the CR could ask for .10, maybe less?? Who knows??
S,B, himself is down at least 20 million, so, that alone suggests that he at least wants to get as much of that back as quickly as possible. But, there are still questions that need answering and how they handle his debt is certainly a prime concern also.
RSN Price at posting:
10.0¢ Sentiment: None Disclosure: Held
