CCC 0.00% 0.1¢ continental coal limited

aim listing logic & questions re announcement

  1. 28 Posts.
    First of all this is my first post on HC, I am newish to shares and a CCC holder,
    hopefully someone can chime in and correct any mistakes I make.

    In addition, I hope to redirect CCC on HC, with a return to posts backed with some rational logic, because even if its wrong, someone can correct it...

    mindless banter and back and forths dont help educate HC readers, and I have been rewarded thus far by the better HC posters and enjoy the forum.

    Thinking about the potential CCC listing on the AIM(which I believe is positive longterm), I dont think it is wise at todays share price ...

    assuming SP parity between the ASX and the AIM, the shareprice would be ..

    GBPper AUD (0.643) * present share price(.062) = 3.98 pence per share

    assuming 3.98 pence per share, a listing to the value of 30million (AUD) done on the AIM would introduce...

    30mil(AUD) * GBPper AUD (0.643) = 19.29GBP / 3.98pence per share = 484,673,367 shares

    Q Am I correct to assume that any listing would ideally be done at parity to the ASX otherwise shares would be further diluted (assuming a higher listed price),?

    Note : I imagine a AIM listing done without SP parity would have a terrible effect on conti coal from a sentiment perspective in australia,

    present shareholders on the ASX would be wise to be wary of a AIM listing without knowing more about the number of shares on issue and the listing price. I dont see another listing as a bad thing but only if the funds are used appropriatly and lead to SP appreciation earlier.

    Q what is the ideal SP to list CC at on the AIM if not done at parity, and why ?

    484.6Mil additional shares on the AIM at parity would dilute the present shares listed on the ASX buy ...

    1.98 * 1 000 000 000 / 484673376 = 4.05 -> 1/4.05 = 24% dilution (number of shares) - a dramatic physcological negative

    Why CCC needs positive SP action, before the AIM listing.

    As a shareholder (8.3c) we are all of the expectation Conti management will continue to ramp the ASX share price thru good announcements,
    Ill hold all year to get my investment back but it would be more fun not to have to pass up some of the other things happening in the market.

    if CCC SP was +10c a share, small share holder sentiment and more importantly having a historical record of positive SP appreciation (which CCC does not have),
    sentiment would override the SP dilution on the AIM for reasons of company advancement.

    Infact the 40million dollars in "lost ASX market CAP" due to recent ASX negative price action is greater than the AIM listing..(ignoring the fundamentals)

    Q Would I be correct to imagine that a consolidation would actually favor smallest shareholders initially because the SP movement would change negative sentiment ?

    Q should the SP on the ASX not appreciate to 9.6c per ASX share(5pence p/s), can anyone put foward technical reason against a moderate (5:1) consolidation ?

    Keep it Q & A, guys...

    Bill.
 
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