Further to the above, it is a matter of fact that for every dollar above $3.11 that the SP rises, the share buy back will leave RT $0.5m worse off than if he had repaid the loan and retained his 2m shares.
That fact must be balanced against the cost and difficulty of raising the capital to pay out the loan.
These two factors should be of assistance to those attempting to analyse the likely magnitude of the SP post any near term deal. They certainly are for me and I would regard anything above $6 as being totally unreal. (I would say more likely to be nearer to $4).
Bear in mind a potential deal is imminent and that management will have a good handle on where that will leave the SP. Also, as the deal is for Trof only, the post deal SP will possibly remain stagnant for 18/24 months until Rett's P3 is resolved.
NEU Price at posting:
$3.05 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)