Vote of Confidence, page-19

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Pinecone54

376 Posts.

94

03/05/19

16:20

Post #: 38400288
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Originally posted by rjtmpgar: ↑

Nice one, very original.

To get back on topic in this thread you started, how do you see the release of a substantial number of shares from escrow on 23 June this year impacting the CAI share price?

For those that don’t know, UK-listed Keras Rsources holds 458 million shares in Calidus and will be issued another 265 million shares on successful completion of the PFS. These shares are escrowed until 23 June 2019. Keras’ intention, based on company announcements, is to distribute these shares to their shareholders and perhaps sell some to fund work on their own projects. This from Keras’ Chairman in May 2018:

“Our interest in Calidus remains a core pillar of our investment proposition and currently underpins our market capitalisation. Under the rules of the ASX the Company’s shares in Calidus are held in escrow for a two year period which will end on 23 June 2019, and the intention of the Directors is to distribute those shares to Keras shareholders at that time, subject to any Calidus shares which may be realised to provide working capital”

Based on this, I think there will be downward pressure on the CAI SP in late June as Keras shareholders look to sell holdings.

Expand

This date ( Escrow ) has now changed to ( the September quarter) which means the allocation could be as late as November.
So it’s unlikely there will be any pressure on the share price for the next six months.
As my holding in Keras represents a large percentage of my pension, the allocated Calidus shares will remain in my pension, as it’s a long term gain once we are into production; hopefully, we will all be rewarded with regular dividend payouts to continue to hold our shares.

GLA

CAI Price at posting: 2.6¢ Sentiment: Buy Disclosure: Not Held
2 Upvote

0 Great analysis

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