It seems odd that Peter Richards (director)would spend $23,367 of his own money buying nearly 1m shares in the market (av price 2.46cps) when he of all people should have known that a cr was possible in the event of continued non-payment by VJ. The troubles with the JV relates I'm certain to cash flow issues with VJ.
With the share price where it is, what price would they set a standard rights issue? 1c? They would then need to issue 100m shares for every $1m raised. Doesn't sound right to me.
What other options do they have? Off-take agreements? Too early with the lack of production traction. Another JV partner? The announcement would have been worded differently.
Maybe it is a rights issue. Then the company would have some serious explaining to do that's for sure.
NSL Price at posting:
1.7¢ Sentiment: LT Buy Disclosure: Held
