a new experience non binding loi

CMQ is introducing new experience to the ASX. Remember CMQ taught us "underwriting a share option capital raising" does not necessarily means the underwriter is going to take up the unsubscribed shares but instead subscribed to secured bonds which not only pay a 8.5% coupon rate but also convertible on very generous terms at the financier option.

A LOI of course does not necessarily compel the parties to a succesful conclusion. In fact more LOI lead to nowhere than suceed. But LOI at least introduces some protection to the parties such as the requirement for good faith, duty of care, eceteras. What is a NON-BINDING Letter of Intent? In plain language it is as good as an unsigned LOI! So why bother? Is it a desperate attempt for the release of supposedly good news to the market? A pump and dump exercise?

When will the company inform the market on the sell down of the ANZ Nominees holdings? No, it is not a private affair between Primebrokers and Melrose. ANZ Nominees is the single largest holding and there is a requirement to report share movement of a substantial share holding.

Cheers