How can this be great? I agree with most people's responses that this is a huge dilution. Mt Kellett will own 45.3% of the company (2.88bn shares issued to them (converted at 10c, USD$225mn using exchange rate 0.78). With current share price of 5.4c (mkt cap $188.375mn), the share price after dilution is $0.03...i.e 3c.!!
How is this great??... Mt Kellett obviously knows it cant get back US$225mn in Sep2018, the conversion price was actually $0.56 last quarterly. So this 10c is the best price Mt Kellett could get.
Also, there is still US$203mn in debt with JARE.
Good luck
LYC Price at posting:
5.3¢ Sentiment: None Disclosure: Held
