major announcement with qvt, page-12

"By my calculations QVT will own a bit over 42% of the shares on issue (if all options are converted, gets worse if not)

There will be 351 million shares on issue, meaning that at posting date a 14.5c share is reduced to 8.2c.
or alternatively a 14.5c price post-dilution is 25.6c price pre-dilution."

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Filsy, I don't think your analysis above is correct.

That would be the case if it were a capital reconstruction, but my understanding is that it's just a straight debt for equity swap. So the 'dilution' is directly offset by the extinguishing of debt at a ratio of one share per 18c of debt.

So a 14.5c share before the deal is if anything worth more now, because the debt was 'cheaper' than what the market thought by 3.5c a share. You have to understand that the debt was factored into the share price already... this dilution didn't come out of the blue. (Disclaimer: I am not an accountant and can be pretty obtuse sometimes.)

I agree with LuckDog that it is a good result for TZL, clarifying the whole situation and removing the threat of an even more lowball conversion.

Yes, it reveals that QVT controls TZL, but we always knew that, and at least it once again demonstrates that there is a good working relationship between Bouris and QVT, who have again come to an accommodation that seems to be acceptable to both parties. Some funds would have played hardball and own more than 50% of the company by now.

To me the trading halt also seems positive, as the underwriter must see value in the company at 14c, just as QVT sees value at 18c. Surely these pros with access to the inner sanctum must have a bit of grey matter?

Although the pump may fizzle out, I think the perception of the company will be upgraded on these events and investors will start to see that TZL is going to be given every chance by the big players to realise its potential. That realisation might finally bring some new investors to the game and see the share price establish a higher trading range.