Originally posted by Evfletcher
hey guys I didn't buy options. but here are the facts.
BLK needs money now, not in 6 months or a year. they are refinancing to save money on ST debt. management would have loved to do it with options but everyone knows that's not going to happen.
if they start producing more for less, they become profitable, reduce debt and SP goes up. if BLK have 2 or 3 consistent quarters after this sept quarter blowout. then the SP might be at 11 or 12c. Brokers and instos start to take notice at the turnaround and they CR at 11c instead of 8c.
@Evfletcher , my understanding of the refinancing arrangement with Lind it that it provided relief from the short term debt incurred with Orion, operational cashflow and funds to complete the Wiluna Expanded DFS. There have been some recent updates in September re the revised resources at Wiluna both UG & OP but these have yet to shift the SP into gear. There seems to be not a mention of when the EDFS will be finalised, as this news may lift the SP.
@zee9876, the "Valentine day massacre" dilution of the register will occur after 14th Feb 2019 to the tune of 114,000,000 shares at a value of 8 cents per share to repay 'Note 1" $9mill. Lind also receives 72mill options at strike price of 8c expiry 5 years which, with the 114mill is locked down until after the 14th Feb 2019. Also at the end of the funding arrangement a further 50mill will be provided to Lind whether or not BLK meets the minimum MC of $80million under the terms of this funding arrangement for the additional $14mill from Lind, to be accessible.
"The parties have agreed that no more than 114,000,000 Shares (‘Initial Maximum Share Number’
can beissued under Note 1 without shareholder approval. As the Initial Maximum Share Number is within theCompany’s ASX Listing Rule 7.1 placement capacity, shareholder approval is not required for Note 1 toproceed. The Company will ratify the issue of Note 1 at its annual general meeting and seek shareholderapproval for the issue of Note 1 to the extent it can convert into Shares above the Initial Maximum ShareNumber. "
I'd be happy to approve (if I could, but stupidly I'm no longer a shareholder with voting rights, only a option holder seeking a better option of outcome) on the proviso that shareholders' options had the same expiry date of 5 years from issue extended to them.
If management looks after the SH then conversely SH will look after them. I would love to convert my options and become a shareholder of BLK again, because the very act of conversion provides funds to the company's coffers directly.
In essence option holders could be potentially stronger lenders to the company but without the 20% interest charge applied - "Lind will initially advance A$7.5 million to Blackham who will issue a secured redeemable convertible notewith a face value amount of $9 million (‘Note 1’
, inclusive of interest" 9 - 7.5 = 1.5 divided by 7.5 = 0.2 x 100 = 20% Bit rich don't you think. Of course if they repay within 6 months then its only 10% interest - how generous.
Ask for an extension and you may receive. Don't ask, you'll not only not know, you will definitely won't receive.
Whether you agree or you do not agree about asking for an extension or a re-issuance of new options, based on a series of assumptions founded either in or around conspiracy theories of or deep analytical investing analyses of this stock's present and future financial viability that affect share price fluctuations and of the market's general machinations, my appeal on this forum is purely a self interested proposition.
I just don't want to lose my dough and I figured there might be others out there that feel the same way.
Shareholder activism ain't a bad thing if its the interest of the majority.
On the other hand maybe I missing something...
However this ultimately goes, an expensive lesson has certainly been learnt.
Always so much more to learn though.
