Not a bad post, and yes, no coincidence - clearly that blip Jun 15th was them rolling the position over to new arrangement.
However, what many are failing to deduce from the very clear disclosure about the whole mechanism in the original notice and now this update (which I cannot fathom how this thread has now garnered this many responses, comments and dummy spitting) is that this short position carries no weight on SP performance. It is a HEDGE.
Macquarie are rightfully hedging downside exposure should PH default. The arrangement states it involves a combo of cash settled options and a stock loan facility. They are hedged. In the unlikely case of default (& IMU trading below 10c) their short is ITM (=10c - SP), the cash settled options (calls) are worthless, and Mac takes ownership of the 100m stock from PH, which they sell and close out their position SQUARE. That's how collateral for a loan (& a hedge) works.
When the stock rallied its little balls off to 62c ("let's see that again!"), do you think Macquarie were sh!tting themselves because they shorted at 10c? No. Their cash settled options (calls) position was ITM to the tune of 62c less the strike (X) price of 10c. They are still SQUARE, and they
need to be, because should PH have decided to pay back the loan early (at that peak) which as I understand was, and is well within his right according to this arrangement, then Macquarie must immediately unwind their short position as they no longer have possession of the stock loan facility.
As
@bavarian1975 rightly pointed out, the shorts open in addition to those 127m we now know that are tied to this loan facility are independent of this arrangement and IMO would be contributed to from a combination of ASX300&200 inclusion and the stellar run to 60c the stock had, and its subsequent fall. PH name calling and finger pointing for loaning his stock out to be shorted and responsible for the SP performance is absolute malarkey and anyone doing so is displaying their ignorance.
I point all this out only to try and help those waiting on the sidelines ($4 etc etc), or holders who may be unsure / spooked into selling under the impression this stock isn't going to have its day in the sun within the next 30 months, or until this 127M short position disappears. It's simply untrue. And we know this because it didn't stop the initial rally north of 60c.
The other shorts will close out on the way up, and fortunately for a lot of them, they have plenty of profit margin to work with given just how far this stock has been depressed since its ATH.
GLA
(20min delay)
