Only thing I could suggest regarding SPP now is that any deal would probably not be signed till the end of the financial year. Needs to business as usual in the meantime, and that money would be very handy.
As to subscribing for SPP, who would do it when the shareprice is below the SPP price. Only someone after a large chunk would, so the SPP is doomed unless the market changes its sentiment very soon, which I think it will.
They only have 100mill shares and it appears to be around 780K options exerciseable between 70c and $1 and another 4.2mill exerciseable at between $1.60 and $2. So another 5% in options (if the shareprice sustains a $2 level). The convertibles appears to be a $4mill loan which it now appears at least half has been repayed. So as long as the shareprice remains above $1 should be no more than 2mill more shares issued to pay out the loan.
Will this announcement force the hand of a CSL.
No matter which way I look at it, this has to be under-valued. The rough valuation of that part of the business has been announced, even if its off by 30-40-50%, you can't have a stock in this industry starting to turn a profit in effect running at a PE of 5 or less.
LFE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
