Why is 67 cents the hurdle?
Well as I see it, that is the SP at which the Converting notes come into play.
Con Notes are redeemable on 31 Oct 2015 @ $2 each(Reset date),
They can be converted to Fully paid ordinary shares at any time.
There are 23.75 million Notes.
Should the note holders decide to redeem the notes AZZ has a bill for up to A$47.5M.
Should the note holders convert, there will be up to 71.25 million shares added to the fully paid register.
Bringing the total issued FP shares to 311.25 Million shares.
Why is 67cents the sticking point?
Well as I see it the only reason the note holders would convert to shares , is to sell them as quickly as possible.
That's a lot of shares coming on to the market.
Now James is not dim.
The reason for splitting Northern and Big Star sales, would, in my opinion, provide the cash to facilitate the note redemptions. (Assuming one sale at least is concluded before October 31.)
I do not believe the institutional note holders are likely to sell by the way.
I is good that the regulators are looking at the sale agreements.
It can only prove a plus for the AZZ Directors integrity and the AZZ Share price.
All in my humble opinion of course.
Interesting, that the wording in the last amended release:-
"The sale of the Northern Star and Big Star projects is a continuation of Antares’ main undertaking of developing for sale, and disposing of, oil and gas tenements, as in keeping with the divestment of the Southern Star project last year."
No mention of the Permian.
My scenario of staying in the Permian may not be realised.
I await the TH lift, the conclusion of the sales agreements, and look forward to our next O&G venture. wether it is in the USA or elsewhere.
All in my opinion also.
Cheers IFINO
AZZ Price at posting:
50.0¢ Sentiment: Buy Disclosure: Held
