The big problem is that it gives no guide as to what the loyalty option will be adjusted to when the conversion to an ETF takes place. In the recent webinar, Simon said the strike price has to be adjusted down by the amount of the capital reduction, but it seems the accountants will not have determined that by Friday when we have to decide. If we use the current NTA of 112 and Simon's guesstimate of 3c for the unlisted component, then the capital reduction should be 112 - 3 = 109c, hence the new strike price will be 115 - 109 = 6c. This means for the loyalty option to be profitable, the disposal value of the unlisted assets will need to more than double from the current 3c. Feeling lucky?
MA1 Price at posting:
$1.03 Sentiment: Hold Disclosure: Held
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