But we have to give away half of all our permits and tassie shoal for what ? Half of NENs cash $10mil.
If MEO did a CR at 0.020 to raise $10m that would be an issue of 500M shares ($20m = 1B shares), plus fees/commissions etc. I'd be quite doubtful a CR could actually be pulled off. Either way we'd see a similar or worse dilution IMO.
I've lost 90% here and my backup plan of TS seems to be traveling in circles at this point. There is still the obvious potential there, but without a purchase/user/JV it does nothing for the SP or our/my investment.
At least with NEN we may save each other's necks from alternatives that we may regret in the long run.
A reduction of around $5m a year in admin is also attractive. IMO Meo rolled the dice and lost, unfortunately it lost consistently, this is not news, only lamentable. As far as I can make out, either way (continue alone or merger) we were/are going to get diluted for the want of cash.
As an investor the merger is not ideal (such rarely is), but the alternatives appear far less attractive to me, so my vote will be a YES and hope the new Management (which looks pretty good on paper) can throw something else other than snake eyes.
NEN Price at posting:
3.2¢ Sentiment: None Disclosure: Unspecified
MEO Price at posting:
2.1¢ Sentiment: Hold Disclosure: Held
