CCC 0.00% 0.1¢ continental coal limited

$30million cash coming conti's way, page-4

  1. 4,892 Posts.
    This is massive, massive, massive news something I think the market has not fully digested just yet.
    Resolution 8 issue of shares to a related party.
    BEE transaction.
    What we essentially have here is a new BEE partner coming in and repaying the intercompany loan in full (Current BEE partners accumulated debt). This results in a capital injection now into CCL of between $20 and $30 million. The only dilution is $5.4 million of equity to Bruce Buthelisi. So essentially Bruce Buthelisi the current BEE partner is selling his 26% stake to a new BEE partner. The only dilution that occurs is $5.4 million or 98,181,819 shares pre consolidation.
    Effectively and in simple terms it can be looked at as a capital raising at approximately 6 times the current share price if they get $30 million from the new BEE partner. which also suggests that the new BEE partner will be able to fund their own way going forward in their associated 26% of all costs going forward. This is very important as it reduces the need for Conti to raise all the funding and potential issue of equity going forward.
    Also with a cash injection of $ 30 million by a new BEE partner this also gives Conti the funds neccessary to buy out the remaining % of Mashala without having to issue any new shares. Absolutely Brilliant.
    Go Conti.
 
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