how does this feel like a buy out? It feels like a CR - and a woeful one. One where at best haphazard management strikes again, at worst management are supporting instos to make money.
Posters have shown that canncord have been strongly buying. They are the CR managers - they know it’s coming and they know why it’s being raised. Tell me how this is not inside information.
secondly - management have continued to miss deadlines and we are close to a number of material announcements…ones that would no doubt move the share price in positive direction (we hope). What this does allow for is to allow Canncord to get their clients in before these announcements move the dial…once again - how is this not advanced knowledge.
Why is the money needed if management are negotiating equity stakes are aligned with NPV rather than MC? Once again if you were an equity partner you would be really annoyed you had to pay much higher than canncord and their clients? If I was an equity partner I’d be saying to canncord that I wanted in on the CR - let’s buy a stake at MC rather than NPV.
Why the desperate need to ‘advance the project’ before material announcements and promotion that equity stakes will be based on NPV.
this to me smacks of a back door deal. I have no information to back that up but it fails the sniff test to me.
Let’s say for argument sake management spend the $20M advancing the mine. Let’s say this increases the NPV $20M. let’s then say that a company want to take over LPI they will pay for the value of the company at the time of purchase. If it’s greater than 60c - canncord and their clients win with not needing to hold through thick and thin. Do canncord anticipate that money is required or do the know?
Say for example a takeover happens in a matter of months. If the money is not spent, NPV will not change - only cash in the bank. Purchaser will only pay $20m for $20m in the bank. I can’t see how you feel a take over is imminent. If this does eventuate then management must know - and raising funds will only be to allow canncord and their clients to get back n before that happens.
This whole thing stinks
LPI Price at posting:
69.5¢ Sentiment: Buy Disclosure: Held
