Ann: Phase 3 Sulphide Intersections Continue at T5 Carr Boyd, page-43

4912

A strategic TH in the next couple of days for assays would be most welcome (I'm with you - assays are everything, visuals are theatre) but could play havoc with those holders of ESRO's wanting to sell heads to finance the exercise

ESRO stop trading on Monday 21st - that's ok because as long as your exercise money is in the ESR bank account by 5pm Friday 25th you will get your conversion (what brain dead idiot do you think made the exercise date [27/6/21] on a Sunday???)

But with T+2, any halt next week will make it very hard for people to sell & settle their ESR's to use the funds to convert because the timing will be tight as you'd want the cleared funds in your bank Thursday in order to EFT/Bpay to ESR that day to ensure the Friday deadline is made

A TH today would mean the shares come back on this Friday. If the assays are exceptional, we would hopefully see a fairly strong SP rise & thus head selling to pay for conversion - yes a dampener on the SP but if that scenario played out & the SP remained robust, that would give people confidence to convert

On the one hand Henslow's would hate that because it would mean their favoured clients wouldn't get the shares they are hoping for at 5c as existing ESRO holders would be exercising leaving less available in the underwriting. On the other hand they don't really suffer because their fee is based on the number of options o/s at the date the underwriting was announced (or that's how I read the deal) so even if there are no options to u/write, they still get their 6%

From the announcement

". As at the date of the Underwriting Agreement, there are 225,812,246 Options on issue which remain
unexercised, representing an underwriting amount of $11,290,612 (Underwritten Amount)"

Henslows fee is based on the "Underwritten Amount"