There’s a bit more to the story, mate. The oppie price and market price were pretty close at expiry—43c on the market versus a 40c exercise price. The perception of a $7.5m loss only exists because the PWM share price later ran up to around $1.34. So really, the failure to exercise could also be seen as simply failing to buy on the market.
That said, the real issue is the sheer incompetence in administration and due diligence. I was disgusted by how badly they handled something so straightforward.
On the bright side, WR1's holding in PWM is still worth A$40m. If management over there completely botches everything, they could just liquidate the PWM stake and perhaps pop in here to buy AGY—there’s enough to give holders a 20% premium.
What do you reckon? Taking that deal, or still holding out for $1 per share?
AGY Price at posting:
2.3¢ Sentiment: None Disclosure: Not Held
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