Funny to think that a cash rich company(RMS) has little option but a dead broke company(EXU) with one project in hand has plenty options. I'm shaking my head. (Without RMS offer there would be a TRADING HALT & CR announcement already)
Whatever EXU holders & management think there project is worth..........common sense says it is worth more in the hands of industry experienced, cash backed management RMS.
If EXU project is worth = $xxx millions
Same EXU project under RMS is worth = $xxx millions + RMS management expertise which is evident since 2014.
Another way to put it is.....If I have $10 million to invest and Mr.Warren Buffet also has spare $10 million to invest and some punters have to take a side. The choice is not hard for the punters. That $10 million in Warren Buffet's hand is worth way way more than mine. He will be able to double it up and I might lose it all. I don't think any EXU holder can debate that.
This deal is a win win for all parties involved.
EXU holders have a chance to convert there ill-liquid share into RMS shares and enjoy the benefit for years to come. If RMS share price goes up ......there share holding will go up as well in the same ratio.
If it was only cash....that was not possible. This deal keeps them in the game. They can enjoy the gains proportionately.
The other choice is keep dreaming.....the management and directors will continue to do what they have been doing since the last 10 years....i.e ...get paid handsomely......increase the outstanding shares.....raise capital........drill here & there...make shareholder believe as if they doing great things......more shares and before they know it there are 2 billion shares. Bingo
All I know is EXU management won't be able to fund the project. I have seen a few deals. Banks are unwilling to fund fully......if they do only part funding and rest is from CR. Generally if the market sense CR....share price collapses.
Since EXU management put their personal interest before shareholders....the dialogue was unsuccessful.
As any sensible person would know the project has a higher degree chances to see production with RMS backing.
It's RMS bid which has created a strong backbone for EXU share price.
If this deal is unsuccessful.....EXU share price will collapse.
I am sure smart EXU holder's realise that.
Some would be selling already and some sold out as the gains are already there to be taken.
(20min delay)