First of all, this is great news. Once again I take my hat off to management: they saw what LTR did with tranche 1 and the effect it had on the SP. They know that holders and punters are wary of LTR dumping tranche 2 and 3, and so they have acted on it. As a result: the LTR monkey could be completely off our back by August 15th. So hopefully good/positive announcements will soon finally see the SP gain some traction and move upwards after the 15th of August, if not sooner.
I could very well be wrong, but my interpereration is that Tranche 2 is currently in play i.e. LTR have them and they can do with them what they wish. But @Brumbie you could be right: they could be looking to place tranche 2 through a broker with a cross trade arrangement. Makes sense, that way LTR are able to offload and get their money quickly and at a negotiated price.
In relation to tranche 3, it seems to me like it is almost like a placement: LTR are offloading 13mil to someone(s) through a trade or number of trades, and the broker is just the middle-man to make it happen.
Cross by broker: “If a stockbroker receives seperate orders to buy and sell at the same price at the same time, he must offer the stock in the market at a higher price than the bid. If no higher bid is available, he can execute the two deals at the same time at the same price.”
So even though tranche 3 shares are technically hitting the market, we shouldn’t see it have any effect on the SP in terms of pushing it downwards
What I’m wondering is: is the release of tranche 3 shares conditional upon ALL the tranche 3 shares being traded between 25 July and 15th August via broker crossing? Or is it possible to say, sell 7mil this way, leaving the remaining 6mil balance subject to the original terms of escrow (released after November 7)? If it’s the former, then you would think the broker would have to have a big buyer(s) lined up...
Who knows, we could have a new major holder with long-term hands lined up. Sure up the register a bit. Or perhaps it is Yahua?
This is my interpretation of it anyway. I could very well be wrong, and probably am
All IMO
GLTAH
CXO Price at posting:
4.7¢ Sentiment: Buy Disclosure: Held
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