RMS (ASX) Ann: Ramelius Takeover Offer for Explaurum Limited Presentation

Originally posted by flaming ↑

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.

Expand

In anycase call me stupid for exiting RMS at 57cents when the 0.9g/t stage 3 “resource” put the writing on the wall for Edna May and excuse me for seeing the opporuntity and synergies of Mace first and putting some of my money into EXU at the 8cent level. I could now exit on market for 10.5 - 11 cents if I wanted. ie Saved a 26% loss on RMS by seeing that their stage3 resource is far too low grade and currently holding an unrealised 30% gain on EXU based on spotting Mace early and all this in a very tough market for gold stocks. Maybe you might give me some credit for seeing this early rather than being condescending to the extreme by suggesting it’s the smart EXU holders that are selling now. I’ll wait for the sweetener and/or wait to see how the offer develops, ie I want to see the take up rate before I capitulate to the offer or sell. Anyone selling now is not smart IMO, plenty of time to make up ones mind.Esh

https://hotcopper.com.au/threads/an...4293456/page-19?post_id=34237056#.W5jL6Ro_WhA

Price of RMS at the time of posting the above “heads-up” post - 56.5cents

Esh

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1.900	114974	13
1.905	3993	1
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(20min delay)
Last $1.90		Change 0.030(1.60%)		Mkt cap ! $2.171B

Open	High	Low	Value	Volume
$1.91	$1.92	$1.89	$6.303M	3.314M

In anycase call me stupid for exiting RMS at 57cents when the...

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