Thought I'd start a new thread so we don't bombard the Infoline so to speak, in regards to the positives/negatives for voting FOR or AGAINST the options.
Besides anyone that participated in the Crap Raise, Is anyone considering voting FOR them? If so what are your reasons?
With the share price trading so close to the exercise price of 7c, even if we were still trading at 4.5c, surely even Ashanti and Fosters can see it's just a really shit deal??? Only in their favour and not necessarily in the favour of existing SH's?
If we all vote NO, and their successfully voted down, besides a few that may spit the dummy and sell, and/or may choose to not participate in any CR moving forward, what other possible repercussions could there be?
Here's a couple I can think of:
If funding/Offtakes etc is not finalised within the next 6 months, we may have to do another CR within that 6-12 month timeframe. If the options are voted through there is no guarantee they will execute and convert those options until the 2 year expiry occurs, (If we make it that far), hence none the better off?
Funds: Some funds may spit the dummy and not deal with CAY again. Or sell out. I'm thinking if the MC and ML is in, will that really matter? Surely there will be funds buying to counter any selling?
Ashanti/Fosters: As CAY derisks even further once the MC/ML is approved, will CAY be looking at a Corporate Adviser/Manager that is much BIGGER than these 2? If so, will it matter if they have their nose put out of joint?
My gut says a 2 year expiry date is far too long considering the circumstances we face. With the MC and ML expected within months, a 2 year expiry date is just rude and irrational. One would expect with these 2 milestones achieved, funds will want to buy in. ATM they can only buy on market as we don't need cash now for at least 6-12 months.
If their expiry date was reduced to 6 months I would give it the high 5 it deserves and vote Yes. No questions asked.
Or if the price of the Options was increased to 10-12 cents, with a 12 month expiry again I would vote Yes. But it's not and all indications are that they will not move on the Options.
Any other possible negatives or possible repercussions of voting these Options down? In 3 months this issue won't even be discussed, as we would have moved on and new news and noise will replace this current issue/s. Just like previous Crap Raises where we were shafted.
We only get 1 chance here so best we make the right decision now and discuss it openly so we go in with our eyes wide open and not blind sighted by people with another agenda. Having said that just coz we vote against the options, doesn't mean we will have the required numbers to vote them down successfully.
To save this post being modded by someone with another agenda, I'll add the below statement
THE ABOVE IS JUST MY OPINION AND NOT FINANCIAL ADVICE. THANKS
(20min delay)