agm details

The AGM details are worth brief consideration. Some investors can be inclined to bridle when they see directors becoming eligible for additional PRP shares. In this case, it looks as though GG et al can become eligible for a total of just over 5m additional new shares between them. However, if my brief glance at the statement is accurate, the performance conditions aren’t unduly lenient (25% >73.5c), and the Directors are broadly delivering the goods at present. I doubt that too many PIs will be grossly upset if the sp is around the 90c mark when the shares vest (though I reckon the shares would still be cheap at that price given the underlying assets & cashflows etc.).

As for the leeway to release up to 10% of new equity as placement shares, that’s got to be a sensible resolution to have at your disposal. It doesn’t look like it necessarily means it’ll happen, but given that JPR will need some cash at some point and given that currently no-one seems to want to lend anyone any money at remotely sensible terms (if at all), then having this tool in your locker seems wise. I suspect JPR might prefer to have a (pretty modest) credit facility available for future needs, rather than take on more dilution. However, if a bit of dilution is the only way to generate a few bucks during the next 12 months, in the absence of anyone being willing to lend, then I guess it’s got to be better than treading water waiting for lending conditions to improve (which I doubt will be anytime soon).

All-in-all, then, the AGM resolutions look reasonable enough in my view.