Brett first things first - is the $50m less 5% commission in CDU,S bank account yet ? do some research on Hanlong and SDL and we have allready had O.W themselves reneging on their $3.80 placement - I know what irrevocable means in Australia and if was Azure doing the deal it would be a non issue but Hong Kong ?
Next question would the underwriter have said yes without having a buyer/buyers lined up ? maybe yes maybe no - I favour yes- If thats the case then I reckon the buyer gets the 20m shares and the 20m options for $50m and the underwriter picks up $2.5m commission - If its a single buyer then the options probably wont come on the market leaving only 2.5m options and from memory the directors took around half a million so that leaves only 2m.
If the underwriter doesnt have a buyer then there will be plenty of options for sale - IMO - BBY will be trying to place the balnce $30m shortfall but I suspect there will be little to no interest here in Australia for them.
Also look out for the end of year fireworks window dressing on Thursday - on top of that its the last day as an ASX 200 company for CDU then on Friday the options list.
Its all Happening Ritchie as Bill Lawry would say !
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