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.
CCC Price at posting:
53.0¢ Sentiment: Buy Disclosure: Held