Agree. The... "gets you out of the dilution needed for 25% of GW Capex"/ get out of jail free card...is a big one. James has it and I'm sure he's using it.
For example: ADN had said DSO could be a cheap fast way to make easy cash-flow next year. That's another 20-30M in Capex on top of the current 100M. So MEP might need to come up with 25% of 130M+ That's 32M instead of the 25M that MEP needs to come up with in the next 3-6 months. Ouch!
I bought MEP shares as I thought the 50M MC was silly. I was thinking if the NPV on the DFS is over 1B, which it's likely to be. MEP is going to be worth 250M MC. It's not like this is secret info. So...Why are MEP holders or the market or Imerys NOT buying MEP shares over 15c or 20 or 25c??
If MEP is worth 250M. That's 50c a share? Serious question.
I've bought all my shares but, if I did have more funds I'm not buying more MEP because...I'm worried about the future dilution and the 1 to 2 CRs needed in the coming months. and because of that MEP isn't going up...we are likely going to have to do the CR between 10-20c
These are the things I think the MEP have already looked into and why they are doing a deal now. Dilution on a undervalued share price is the enemy of all shareholders. Unfortunately, ADN sees this also.
I think ADN jumps to 25-30c after this deal. That's 100% for MEP holders if it's a 1:1 or better! Plus, where does ADN's SP go to in the next 6-12 months? I'm looking at 2-3 bags! I'm not getting 2-3 bags with 1-2 big CRs with MEP in the next 3-6 months.
Let's see the deal first and go from there. I really think we might get a white night come in and bid this up a bit. I can't see how Imerys doesn't do something here.
I'm feeling really good as a MEP holder now and I've got a few shares.
GLTAHs
MEP Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
