I am not against CRs combined with SPPs when they are needed.
This one was completely unnecessary and over the top in its scale based on the info provided by management. Unless Management provides some good reason why to raise at these low levels and for the maximum amount, I call this a sh#**y deal.
The loyalty option program is still in its early days. The SP was around 30 cents and a strong incentive to convert oppies into heads = consistent cash inflow for further funding of drilling campaigns.
Interestingly, suppressing and pushing the SP price down with this CR will create more unmarketable small holdings (21276 by 2965 holders or 70% of company owners). The sale facility of unmarketable holdings will significantly change the company ownership structure and place around another 1.2Mil shares on the market if the price hangs around 0.235 cents.
Most people have several holdings (Super, etc), meaning ever further consolidation.
Are these corporate actions (CR and Sale Facility) unrelated?
GRL Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
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