Hi JW, I feel I have to respond.
“Oh and exactly. Magnolia isirrelevant. Not sure why you brought it up”. JW
Let’s keep to the facts - readthe previous posts by others.
“I'll help you out. They will only get12.8% of the company for $2.89m”. JW
Come on JW, I don’t need alesson in third grade maths, and besides, I never said what percentage Aureus would own, but thanks for your input. At last, a useful contribution rather than your usual banal questions.
I think we can look at thisownership from two perspectives.
If we take the 2019 AnnualReport figures as current
No of ordinary shares -575,987,479 (from Ann Report)
Placement shares - 84,967,641 (from PWC)
Total no of shares - 660,955,120
Value of Placement -AU$2,888,899.79 (from PWC)
After the placement, Aureus, ownership would be:
84,967,641/660,955,120 = 12.855%
Wow, almost the same figureas yours, pretty close to the mark, I think. A celebration is in order, don’t youthink? Now if we look at it from a pointof view of Aureus maximising their allocation in accordance with regulations (my preference)
Note: Australian Securities Exchange - “The ‘15% of issuedcapital in 12 months rule’ in ASX Listing Rule 7.1 applies to placements and,as such, the issuer must either seek prior shareholder approval for a placementif it will exceed the limit or ensure the issue falls within the 15% limit.” 15%is the maximum number of shares that they can buy during the relevant period.
Using simple third grade mathematics, their ownership is:
(0.15A) * (20/23A) * 100 = 13.04% of all shares or capital owned by LNG .
“A” is any number of shares or dollar value of LNG at thestart of the relevant period.
Now isn’t that a more elegant solution when you need a quick ballpark figure and can’t guarantee the exactness of your data.
Please yourself whether you use it as a point of argumentor as a check on your calculations. You choose.
Let’s recap:
Company value per share - $2,888,899.79/660,955,120 = 0.437cents/share. (based on assumed money if kitty)
“The proposed share issue is at 3.44c.Why would anyone pay that in administration if the value was actually 0.5c?” JW
Because they had no option. They appear to want this company. They have taken up their 15% share allocation (maximum allowable), and need sufficient funds (approx. $3m) to run the company. They had to raise the price sufficiently to achieve this. They’re not stupid. If or when LNG is resurrected, Aureus and their cohorts will be able to gobble up shares at a fraction of the 3.44c (maybe at or near 0.5c.). Talk about averaging down, all this for a little pain upfront.
The listing share price willbe what the market demes it to be, not what you or I think.
This placement should keepthe company afloat for about four quarters. They have about three quarters topull a rabbit out of the hat before we are invited to take part in a CR.
"Good chance of getting my 4c/share back." JW
“Good chance” What does that mean? Well, good luck with that. When do you expect this, and where’s your supporting evidence? You could be waiting a long time if this is your expectation.
This placement could keep the company afloat forabout four quarters. They have about three quarters to pull a rabbit out of thehat before we are invited to take part in a CR. J L.
