KRR

11.1%

1.0¢ king river resources limited

Ann: June 30 2018 options underwriting, page-58

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corlemar

592 Posts.

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22/03/18

19:22

Post #: 31960594
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Originally posted by possum2 ↑

There is obviously confusion amongst shareholders about this announcement so I will endeavour to explain.

If the share price was for example 20c come 30th of June one could imagine all option holders would take up their entitlement which would effect give the company about 12 million dollars.
The company would then get an additional 6 million dollars from these sophisticated investors.
Meaning there would be a total of 18 million dollars coming to the company.

Tony Barton did this deal to ensure that there would be an injection of at least 6 million dollars IN CASE something out of left field occurred.
EG if there was a sharemarket collapse and the shares went back to 5c he is guaranteeing that 6 million dollars will be coming to the company to enable it to continue to do the things it has to do over the next 12 months. The cost of drilling at Mt Remarkable for instance.

This raising of the additional 6 million dollars at 10c is over 1000% greater then what the shares were trading just 4 months ago.

It is like a company that was trading at 10c in November raising money at 1 dollar in 3 months time.

The stock that will be issued to these sophisticated investors will not be issued until after June 30. So there will not be any stock coming out for the next 3 months which could dampen the share price.

The fact that these sophisticated investors were willing to sign on the dotted line to acquire at a specified price irrespective of what may happen over the next 3 months shows their confidence in what KRC has got and their confidence in Tony Barton to increase the value in this company.

It puts KRC in a very strong position financially regardless of where the share price might be in 3 months time because of unforeseen circumstances.

It should make all shareholders comfortable that the company has an additional 6 million dollars in their bank account come June 30.
I believe it will be closer around 18 million to be honest but world share markets can do strange things.

Tony Barton has eliminated some of those concerns by covering all bases..

Cheers.

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Yep bang on the money possum - I tried but couldn’t have said it better. This is clever work by mgmt which is what you expect from a capable and prudent BOD

KRC Price at posting: 14.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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(20min delay)
Last 1.0¢		Change 0.001(11.1%)		Mkt cap ! $15.28M

Open	High	Low	Value	Volume
0.9¢	1.0¢	0.9¢	$7.67K	776.8K

Buyers (Bids)

No.	Vol.	Price($)
19	5312141	0.9¢

Sellers (Offers)

Price($)	Vol.	No.
1.0¢	536700	2

View Market Depth

No.	Vol.	Price($)
16	4867697	0.009
19	27596417	0.008
6	3239501	0.007
9	9156529	0.006
13	8239087	0.005

Price($)	Vol.	No.
0.010	500000	1
0.011	3807425	7
0.012	1664039	7
0.013	2233363	5
0.014	551063	4

Last trade - 15.37pm 08/11/2024 (20 minute delay)

KRR (ASX) Chart

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