With Polo, Mr Dattels and his associates all raising cash at the moment it seem likely that Extract maybe about to have a capital raising to fund them through to a BFS by mid next year.
Polo has sold 6.66% of its stake in Berkeley (BKY) for A$8,484,276. If Extract to raise around A$80,000,000 by placing 10m shares a A$8.00, then the A$8.5m PRL has raised would allow PRL to maintain their 10% holding in EXT without being diluted by purchasing 1m shares in the placement.
Also at a General Meeting on the 2 July, KAH voted to "increase their pre-emption rights to 19,686,892 Ordinary Shares and/or other securities". This would also allow KAH to make their own placement, of around 10m shares at 160p to raise 16mGBP (~A$32m), giving them enough funds to participate in any capital raising by EXT and, maintain their 40% holding without being diluted by purchasing 4m shares in the placement.
The question is who would get the remaining 5m shares on offer?
I would suggest that all shareholders contact EXT's office to make it known that all shareholders should be given the opportunity to participate in any future capital raising by a non-renouncable right issue, especially if it is at a discount to the current SP, and not just a chosen few.
Any rights not taken up by shareholders could be auctioned off to institutional buyers.
Regards
Steve
EXT Price at posting:
$8.25 Sentiment: LT Buy Disclosure: Held
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