Having read some of the posts above, totally agree with the general sentiment.
It is a total Management/Board f*#k up that it has come to this, having to discount to 6c when our Leo holding is worth 13c/share shows how incompetent they were. The only saving grace is that some of these people had significant money invested in this, so they will experience some the pain they have caused.
If the placement is at 6c a share, you can bet your bottom dollar that is where the share price will end up. With the planned extra 2.4b shares on issue the overhang is going to last for a long time before it will climb higher. (assuming they can make it work)
Interesting too they expect to announce the placement results Friday, given tomorrow is a public holiday, most will also take Friday off to make a long weekend, it seems to me this is being done at such a bargain basement price they’ll have no trouble filling it even if most are on an extended break.
IMO at 6c a share they’d be better off closing it down.
If it’s liquidated those escrowed shares would be able to be released, they still have $36m cash - would have had more if a decision was made earlier.
Yes they have mine closing costs, creditors, contracts etc. I’m quite sure if they put it on the market, even at $20m, they’d be able to walk away cash neutral. By the time they did that, the Leo shares might be worth 18c per FFX share, better than the 6c we otherwise will get!
I’ll vote against the resolution, though I doubt small people like us will have much of an affect on the eventual outcome, which will probably get over the line.
Not sure what the ramifications will be if it’s voted down, I think the Board needs to explain why we should go down this path & not just wind it up.
So planned relisting is Thurs Sept 29 - a week away, we have 2 choices, sell or hold.
Assuming this all goes ahead with shareholder approval, we’ll have 3.56b SOI, at 6c giving a market cap of $213m
At 75c Leo is worth $158m, so Morila would be valued at $55m
IMO Leo is terribly undervalued, I’d be very surprised if it doesn’t at least double in the next 6-9 months, once construction starts to take shape.
You can see why they’ll have no trouble filling the placement at 6c
I won’t be selling my shares at 6c, as much as I’d like to put this behind me, the decision needs to be based on sound financial reasons, not emotion.
