Just going through this now. Appears the market is taking time to digest too. Two things that came out to me;
i. UCL has $6 million coming it's way. It will be all spent of course but it looks like they have now locked in funding to the end of the Feasibility Study on Sandpiper and that will be a whole new ball game at that point because the value of the project will be certain. Bring it on!
ii. it appears that rights will themselves be tradeable. That could hold back a little selling down to offer price if I'm reading it right as the implied value may offset or at least diminish the purpose of selling and buying back - correct me please if I'm wrong. With a 1.2 offer price plus the rights value a price over 1.2 is currently justifiable.
iii. John Kahlbetzer is a sub underwriter and fully committed to his maximum entitlement. That's an approximately $2 million commitment on his part and a significant step towards a successful raising as it locks in 31% of the placement to a massively committed long termer. I'm looking for MAK to take their entitlement too which would mean 36% tied down already.
Actually it's already successful anyway being fully underwritten but I'd certainly prefer that it's fully subscribed by long term holders rather than Pattersons having a whole swag of shares of which they need to dispose thereby creating an overhang.
UCL Price at posting:
1.3¢ Sentiment: LT Buy Disclosure: Held
