Datts exit from KNB has caused numerous theories and of course a...

Datts exit from KNB has caused numerous theories and of course a price decline with the initial fall from 6 cent range to 4c range on the back of his on market sales. His call for a 249d and then pulling of it with 1 nominee director placed was due to i know being other large holders support of the existing board and not Datt’s 249d move. Yes he had 18% but other large holders and long term supporting holders had at least equal or more of the voting power. So in the end they both met in the middle ground with Tony Gu appointed.

My theory from here would be that Tony Gu would have joined the board and potentially tried to instruct the existing board on the future of the companies drilling or so forth. This would have never worked as even though 1 holder has 18% of the company their holding does not mean they act for all holders through their nominee and the whole board makes decisions on behalf of holders. Could the push back from existing board of Datt’s wishes be enough for him to sell and move on. Potentially yes as we saw his intentions with a 249d he was getting edgy with what he thought was overboard director performance rewarding. Did he throw the baby out with the bath water? We will never know but it is a high possibility. Time will tell on this but we have seen him have board members on other companies he holds resign and he sells. So do we think Datt sold due to the grounds geology or his friction with the board considering he hit the company with a 249d. Could the damage that comes with a 249d be repaired when Tony Gu joined the board or would there be friction between Tony Gu and the existing board. I know my theory would be of course there would be friction between Tony and the existing board. The only question remains was that friction enough to sell out of KNB?

According to calls around i have made all other large holders are still on board. Lion Selection havent sold as they would need to declare it. Lowell Fund initially sold in a cross trade to Datt in the 3c range and according to their May report they sold out for a tidy profit as why wouldnt they when they sold a chunk in the 3c range. According to what ive learnt Lowell though have re entered their position in June and that May report is old news. So accordingly i believe Datt is the only 1 to have exited while causing panic that triggered other market moves. Lion Selection still holds and Lowell re entered which we will see soon enough in their june report so they must still think KNB is a good opportunity but a profit is a profit for them initially.

So is KNB again a great opportunity here? Id say yes as they now have over 10 million cash to drill extensively plus start to look at their other areas including the high potential lachlan project. At what point does the market wake up again to this opportunity with enmore already showing a clear resource discovery is on the way but multiple other project areas with very high potential.