more simple. Don not make so much numbers... life is easier.
Mt kellett has most probably practised an arbitrage convertible strategy from the very first beggining.
This means, short the stock while holding bonds.
Moreover they have sold along this years part of their distressed bonds.
Now... converting bonds at 0.10 AUD, could imply they can close and match their position.
Therefore I doubt they will hold 45% of capital at the end of the day.
We will know for sure ownership percentage as soon as they have to declare it in ASX after 30 november if conversion finally takes place.
Profit under all these circumstances is triple for MK:
1. Profit between average sold price and repurchased at 0.10 when shares are issued.
2. Interest of bonds with a X times over 2.75% inicial Interest. Could reach easely 20%.
3. Profit of shares once they get stake and sell at much higher price.
Therefore and as a conclusion. From my point of view MK operate under legal protection but without ethical approach.
The can have made a huge profit already despite shareholders have their shares at 0.066 level. Amazing... Masters of universe. Imagine who has been your partner all this time along this LONG journey all these years...
I would vote no in AGM. But have to admit that under current situation with complex configuration REE market prices and future projections of China market it is necessary to reduce Lynas debt.
Except if MK has information shareholders do not.
Now. With almost 7 Billion shares I really doubt we see Lynas shares above 0.60 / 0.70 AUD in the future. Capitalization of 4.5 Billion is reachable. For sure no more.
Aside all this I want seriously to thank Amanda Lacaze for been a so splendid CEO. Brillant. She deserves all recognisement. Sharp, tough and wise woman. Thank you Amanda.
LYC Price at posting:
6.6¢ Sentiment: Hold Disclosure: Held
(20min delay)