It means selling heads for 6c to pay for converting oppies at...

It means selling heads for 6c to pay for converting oppies at 2.6c into a regular share. One share converts 2 IMUOA into 2 shares. Too compelling to ignore for those who got them for free or at a very low price and haven't sold them. Will keep the sp back, let's hope not sub 6c. That selling pressure kept NVA sub 5c for 4 months - now 4x that level at about 20c. Same will happen here in December, once the selling pressure is gone the sp got one hurdle less to jump over.


Worst case:

The underwriter gets the remaining oppies , maybe 170m ? , and dumps them straight away for anything above 2.6c

But LC reassured me on the phone that a special agreement with the one BP client who gets them all is in place preventing that from happening.
She did not specify the confidential conditions but confirmed it is 100% made sure a dumping will not occur.

Bad case:

1. 100m heads will be sold to convert 200m IMUOA into 200m newly issued heads
2. If so, max of 100m newly heads will be dumped again (5-6c) to leave those converters with the same holding as before the converting.

Using NVA as an example: 1. did happen, 2. not noticeable

Best case:

Most IMUOA / IMUOB will be converted using additional funds by holders and will be kept LT.

Hard to predict the % for that.


I bought more heads at the close, took another one for the team to keep the sp at 6c to make chartists happy - ok, bought them for a profitable trade as I feel there will be a cracker anns on Monday. Hope I will be right with that.

GLTA