“...Capital Return and reverse split will be interesting now as with these results and the weakness in SP - there will be people just holding on for that $cash, then without positive news; tank time.”
This was the inherent risk with applying the sale proceeds to cash capital return/special divi rather than a buyback. Unless they have something spectacular to announce in the New Year that can bolster the SP, the day after record date we will likely see heavy exodus. I suspect much of the selling today has foreshadowed this, with people opting to exit now rather than wait for 6.52c only to see the SP tank by an even greater amount once the eligibility cutoff date is reached.
As you rightly note, the loss on sales makes quite an impact here, and limits the possibility (that a few of us were still entertaining) that some of the remaining sale proceeds might be applied post-consolidation to a buyback as an additional capital structure strengthening exercise.
From today, I will be keenly watching the short interest here.
MYX Price at posting:
21.5¢ Sentiment: None Disclosure: Held
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