Ann: Trading Halt, page-54

Sent for a sharp rise tomorrow morning - 60 cents coming soon - see below - you get it for nothing so be grateful and put some effort in and decipher it. Lucky few who get to buy at 26 cents - never again will you see this in the 30's or 40's







‍Paladin does away with bookbuilds, targets shorters

UraniumminerPaladinEnergyandits underwriterJPMorganhavedone awaywiththetraditionalback-end bookbuildaspartofits$205million raising,whichcouldsethedgefunds scramblingandseethestockpopwhen itresumestradingonWednesday.

JPMorganwall-crossedanumberof fundslatelastweek,beforewrapping up$100millioninsub-underwriting commitments.Partofthepitchwas thatitwouldbethefunds’onlywayto gettheirhandsonPaladinstockaspart oftheplacementandrightsissue,with nobookbuildsofferingrightsnottaken upbyexistingshareholders.

Itmeansifhedgefundsshortthe stock–andthereareafewwith11per centofPaladin’ssharesheldshortand almostallofthestockborrow exhausted– theycannotcovertheir betswithcheapstockattheraising. Instead,theywillneedtofindother waystodeliverentitlementsharesto rightfulowners.

Andwhiletheraisingwasdoneata steep23percentdiscounttothe theoreticalex-rightsprice,whichplays ‍intothehandsoftheshorters,Paladin ishopefulitsstrongerbalancesheet andstrategicinvestorHOPUClean Energy(Singapore)shouldhelpdrive thesharepricenorth.

Itremainstobeseenwhetherthe storyplaysout.Butifitdoes,we wonderwhetherthiswillsignala renaissanceforup-frontsubunderwritinginthewakeofArrium’s shockraising.Therewereplentyof lessonsforcompanies,bankersand investorsinArrium’s$754milliondeal, andsub-underwriterswereperhaps thehardesthit.Paladinalsorevealed onMondayitremainedintalkswith otherpotentialstrategicinvestors, believedtobeChineseandFrench utilitiesproviders.Fundmanagers, though,haveheardmostofitbefore andreckonit’sworthwaitinguntilpen hitsthepaperonanynewdeals.