The court case that MCT has initiated is going to be interesting - The last quarterly cashflow did not show NME sitting on a pile of cash and I have been unable to see if the CR proceeded and what they received if it did.
Presumably the court action is going to take a while to work its way through the system but it seems fairly clear that the majority of remaining SH of NME are sitting on their shareholding.
NME have to find the funds to defend the action and then if unsuccessful are they going to be able to come up with the $ to pay any judgement?.
MCT is not exactly flush with funds but right now has a little in the kitty.
The offer is no better at the current share price so if NME SH have not taken it up by now unless something dramatic happens (like losing the court case - assuming they can fund the defence) the stalemate continues.
If the court case goes MCT's way NME without sufficient cash would have to be looking at Liquidation/receivership. Again I could not see if NME's CR proceeded and if it did what they received but unless they have cash from somewhere you would have to think the directors would need to be considering the company's position re insolvent trading. A liquidation assuming MCT had sufficient cash to trump any other prospective buyers would at least clear NME's debts and leave MCT with a clean acquisition
The mess continues for both companies SH at the moment.
Perhaps someone else has a clearer picture of NME's current cash position / their CR status/position.
MCT Price at posting:
0.3¢ Sentiment: Hold Disclosure: Held
