1. WAPRC received its compensation for free 300 million shares valued at $1.5 million (0.005). WAPRC could make a lot of money when the share price going up significantly.
2. It is less likely that the ANS/WAPRC acquisition deal could be completed by 30 June 2019.
see the following milestone:
a. China NDRC approval requires 4 to 6 weeks
b. FIRB approval requires 2 weeks
c. shareholders meeting required one month notice or at least 5 weeks
Total a to c = 13 weeks i.e. at least 3 months. We only have two months left.
3. Noteholders have put two conditions to SDL on 2 Nov 2018 that the Mbalam convention should be extended by 1 July 2019 and trading of SDL shares should be also resumed by 1 July 2019. So the deadline is on 1 July 2019 to solve SDL debts otherwise default. In this case, any acquisition deal extension beyond 30 June 2019 is not possible unless noteholders agree to change the deadline.
Even the Mbalam convention extension is signed in May 2019, the ANS acquisition deal is less likely to be completed by 30 June 2019.
4. The existing agreement between SDL and noteholders remain valid that noteholders can convert their convertible loans to shares and own around 68 per cent of SDL.
5. If the Mbalam convention is extended and present iron ore price keeps approaching $100 per tonne, noteholders have great incentive to become the major shareholders of SDL and then SDL becoming debt free, and RE-RATED and it is easier for noteholders to sell some of their equity stake to other parties at a premium.
Does it make sense if you are a noteholder?