My experience with Dyesol is that Bergen will buy shares each month at a 10% discount and then (potentially or likely) sell them on market at a profit, but putting downward pressure on the SP.
The funds raised will offset the monthly cash burn for CFU.
Effectively there will be new shares trickled into the market each month. The SP will depend on how many of these the market wishes to absorb. Bergen won't care which way the price goes, but if the price does shoot up, they have the option grabbing some (Purchase Price B).
In Dyesol's case, Purchase Price B never eventuated. The share price wasn driven to very low levels. The more the price dropped the more unsure investors bailed. Dyesol's SP did eventually recover some what and for those who got in around the bottom, they would be thanking Bergen.
The Bergen aspect of the deal will be good for CFU to address their current cash flow issue and continue as a going concern. The fickle market will determine the path the SP takes over the period the Bergen deal is in place.
There will be many investors who get these cheap shares. It they don't intent to hold them, they will off load them on the market for a short term stag profit. Those who can't participate get an opportunity as the SP tries to find an appropriate level to minimise those stag profits.
My experience with Dyesol is that Bergen will buy shares each...
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