I think we should keep an eye open for the shortfall notice on Monday to see how many shares were not taken up. I have read the Non-Renounceable Offer (NRO) Doc and it states Dongarra Pty Ltd (don't know who they are - does anyone know?) will underwrite the issue and will be paid in shares not $$ for their role.
They get the higher of 150,000 shares or 5% of any shares they need to underwrite. So if the shortfall is 4,000,000 they get 200,000 STB shares as an underwriting fee.
There are a little over 19 million shares as part of this NRO - i would be very surprised if there is a large shortfall, so if Dongarra are not a long term holder, there could be some immediate selling pressure from the 3rd onwards (plus a few punters maybe willing to make a quick buck too)- 100% return does have some appeal!
L/T I think this stock is a real gem and love the fact that more people are coming on board the management team. This does lend the project some much need credibility with the overhang of sovereign risk (Eritrea having UN sanctions and being on the US State Department's Countries of Concern List).. Nevsum has seemed to handle the relationship very well with the government and hopefully STB will learn a lot from their approach and delivery on time..
Happy Australia Day!
STB Price at posting:
$1.21 Sentiment: LT Buy Disclosure: Held
