I have been told that shareholders will not be advised of the details of the projects or capital to be injected into GOA, until after GOA has incurred the 500k debt to Premier, and the DD is complete - which will take some weeks.
If shareholders do not approve the merger we will have about 90 days to repay the loan. Failing which I suppose it it possible that Premier can liquidate GOA and seize the assets? I wonder if the Bactech deal will stand under those circumstances?
IMO this is the worse possible deal that could be done.
It is one thing to merge two public companies where both are undervalued by the market, but quite another to merge a private and public company in the midst of a stock market crash where the private company has lofty ideas of it's value.
I wonder what the market cap of Premier would be if listed with the [email protected]% TiO project? probably at less than cash backing judging by other HM sand companies.
IMO this is not in the best interests of GOA shareholders. I feel like I am being stitched up. Maybe it is the only deal available. If that is the case, then Croydon is not the fantastic ground that the geo's have been saying it is. Must be moose pasture no to attract interest from major companies when GOA trading so far below asset values.
I am extremely unlikely to invest in a company run by a geo again!!
GOA Price at posting:
2.3¢ Sentiment: None Disclosure: Held
