Yes, these monthly sales by SPP Technologies are pre-agreed.It...

Yes, these monthly sales by SPP Technologies are pre-agreed.

It is the “structured arrangement” announced on January 15th, whereby SPP Technologies (SPT) would sell BLG shares to Lanstead Capital LP (Lanstead), in 36 monthly instalments of 1,590,610 shares each, for a total of 57,261,995 shares (hence the last instalment will be 1,590,645 shares, I would imagine).

Looking at the “off-market” transaction prices (February: 15.50c; March: 15.22c; April: 12.78c; May: 12.62c; June: 11.42c; July: 11.46c) they all seem to correspond to a discount of ~16% to the lowest daily VWAP occurred during the previous month.

So, this must be what was meant by “SPT have agreed to a structured arrangement which allows them to benefit from any increase to the BluGlass share price over a 36-month period”, as per the original announcement.

If this is indeed how the monthly transaction prices are calculated, then it is true that a sustained uptrend would give SPT a better price; on the other end, even a single sharp drop every month would be enough to give Lanstead a much better deal.

I may have got it all wrong but, looking at the historical series so far, the pattern does seem pretty regular.

IMHO & DYOR