I am with you peteski I think we up the creek without a paddle...

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Bugster

14 Posts.

02/06/16

11:56

Post #: 17932879
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Originally posted by peteski ↑

Resource exploration successes aside, WHSP was the catalyst for me buying into RUM.
A strong, successful company holding a major shareholding. I believe they would have a high cost of shares as I purchased a number of parcels around the time that WHSP made some of their purchases.
I assume they, like most of us have massive negative percentages blazing in red against our/their holdings.

This offer is a sensational opportunity to average down our cost base but I sense a feeling that some/many SH are at the end of the line with the continual decline in our investment and very wary about throwing more money into a bottomless hole.

WHSP obviously see value in this company or they wouldn't be underwriting and committing to their full entitlement and money and time is not a consideration for them.

Here's the catch 22. If we don't take up our entitlement WHSP will sweep up everything left over for .02c a 54% discount on the SP before the offer. We will be gifting them below value shares.

They could hypertheticaly increase their share holding to upwards of 50% at which time we effectively become a subsiduary of WHSP as they would be able to take control of the board and run the show their way. Not necessarily a bad thing, but if they take control I fear the liquidity in the SP maybe subdued and stay in the .02 range.

Then there is a Left Field possibility of an extended SP of .02c or lower which would make a perfect platform for a total takeover offer at say .04c a 100% premium , a SP less than the current pre rights offer and massively undervalued to the potential of the RUM resources.

Just a few ideas playing on my mind in this decision making process.

Really torn on whether to take up the offer or not.

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I am with you peteski I think we up the creek without a paddle here. We are damned if we do and damned if we don't. Pour more money after bad money, I brought in the first time at 25c and am seeing my money flushed down the toilet by these bozo's bowing to big end of town. WHSP will swoop in and buy this company for nothing and bring it under their umbrella until they are good and ready to do something with it and make a good return for their shareholders. I really hope that I am wrong but I don't have a good feeling about this one.

RUM Price at posting: 2.3¢ Sentiment: Hold Disclosure: Held
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