Problem is JB I am a descendant of the Brahan Seer ( google it) so me and Dr Woo had a chat about our conversation in feb 17.
Giggled a bit about ;
1. the Bunnies
2. debt near $500M
3. profits which surprised on the upside ( WIP Milking & all that beavering)
Then the conversation meandered into corporate finance issues..
I raised an option possibility that isnt done but which is possible and feasible. (At Feb 17 there is still a debt issue and the SP was still "Dreich" ( google it) ..... around $1.50. ) and in Melrose ( center of te corporate finance world) they have whacky but feasible ideas. SGH goes to its supporters almost all retail ( dont worry Alex) and offers them an attractive deal.
In effect SGH creates Mezzanine Finance from its own 90% retail support and there is mutual benefit ( alchemy really)
$60M is raised by way of a convertible very high coupon 2019 dated pref share ( the demand might amaze) offered only to shareholders and a $25M 5% dilution institutions placing.
Once done thinking cap on for a $50 convertible listed placing in 2018 and again in 2019.
Mel
SGH Price at posting:
26.0¢ Sentiment: Hold Disclosure: Held
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