If you read the above announcement and your initial reaction is to sell and run for the hills. STOP. Take a breath. Calm down and consider the opportunities that this presents CAP.
I have often thought that the handbrake on CAP has been the arrangements with Pure Metals/Ample Source/Silvergate. The need for cash clearly explains why those parties were looking to change the board and flip Hawsons for a bit of cash. All of those interests are now held by a liquidator. The liquidator will be looking to sell those interests, being approximately 30% of CAP (post consolidation of CAP).
This means that CAP will soon have another major shareholder. Hopefully one that will be genuinely interested in advancing Hawsons.
Therefore, based on the current share price, someone like Twiggy or Gina could come along and offer to buy 110 million shares (20M currently held and 90M post consolidation) in CAP for about $5M. Think about what that could mean for CAP. I'm sure CAP would also be talking to others, such as Mitsui, to say hey, rather than spend $5M to fund 20% of the BFS for an offtake right, why not buy 30% of the company for $5M from the liquidator.
This actually presents many positive possibilities and opportunities for CAP.
CAP Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
