*** exactly this deal would have taken hours to structure as it is Non Binding and without due diligence, terrible announcement. It effectively means nothing. Just demonstrates how a panic situation from last weeks lows and left last minute panic decision.
Brokers will revalue this as dilution so if we see 40c it will drift back as we are not adding value and this has dilution effect. Basically brokers have to adjust target as we are effectively giving away 14% in options for nothing.
Would have been better to pay upfront fees, term of 3-4yrs, options 50-60c. If a 249 or T/O was to happen then this goes nowhere. This deal is a joke!
Just wait when due diligence done could even have greater terms against us.
So in my view this is an immediate reaction to last week, no due diligence as this takes weeks not hours. We have no information about RG North, or if we would be remediating this well as was positive SP would have gone up. So why the silence and if well doomed then these guys will walk in any case.
This could well be another blocking stake and looks like it to me. This is another poor decision rushed and ill thought of. We don't even know the reserves of RG North.
Now with Verb are they representing another 3rd party family with this deal. What is it going to take for holders to realise how bad this effectively is. We are really losing our way.
Anyway *** great you see this as I do. So many problems and again us holders are being let down by such bad decision making. Enough from me as I am really concerned now.
EGO Price at posting:
33.0¢ Sentiment: Hold Disclosure: Held
