This was a good deal at the beginning of June as it was at a premium to the price then and marked the start of the turnaround in share price that followed - I posted about it on HC at the time:
"Quite an interesting report - liquidity problems now resolved with a $1.62 loan @ 8% from Lonrho Plc it covers them until the $1.4m from the bond is repaid back. Some potential dilution though of an extra 90m shares; as Lonrho Plc can opt to take payment in shares at 1.8c per share - which is at a premium to the current price. I think a good financial arrangement all round in difficult times, better than what I was expecting (at least they didn't go near Indian Ocean Capital ! )"
A lot of the posters haven't done their homework. Who wouldn't convert to shares now if one was in the position of Lonrho Plc? ...this is another sign of confidence they could have asked to be paid back in cash in Nov - but they now they will be worth a lot more later and have a significant controlling stake now. They will not be selling on the market for a quick gain anytime soon.
I will not be voting against this.
LOM Price at posting:
4.9¢ Sentiment: None Disclosure: Held
