Jwfc, You must be dreaming... Buy Jacka for 5c and a few shares (assuming 17.5m going by your 90% thing) would value Jacka at 24m... That wouldn't go ahead. I can tell you that. With cash of 12m coming in that alone puts the offer at what, 12m for the company? Ahh, they paid $16m for Aje 2 years ago, they are closer to production and lets not forget the whole Odewayne farm down of 15% for $15m.. That alone would mean if they wanted out they could sell the rest for $15m... The only reason their SP was where it was is due to people's disappointment in non comercial flows at Bargou and the fears of a CR. We know first hand what that does the SP!
Besides all of that, I doubt on sign off we'd even see the SP reach 40c within say a month. I could see us slowly appreciating in SP but not a huge jump. So essentually we'd need to issue more than 10% shares for a T/O and even then we'd be left with no cash for the commitments JKA require which means more CR and dilution anyway!
I believe the yanks are starting to cotton on to the benefits of this deal and why the timing is great. Whilst we have near term price catalysts, so do Jacka in the situation of having cash to back them. Without the cash then yeah it's scary due to the CR factor. Without that things look a lot more rosey.
TPT Price at posting:
21.5¢ Sentiment: LT Buy Disclosure: Held
