MKY (ASX) company making deal

Originally posted by cocopops ↑

Hi All

Overall, I am disappointed with this so-called “Advanced project” – this is not as all tenements owned by the vendors have yet to be drilled – only advantage is that they are “ready-to-drill” which to me is not an advantage as the new merger company will need to spend lots of monies to test & find uranium. True – some of these tenements are situated near to explorers that have identified resources – but no guarantee for MKY’s future of finding uranium

Nfiallthetime is right (got shot down badly by NLR as usual) - MKY is paying a high price (basically at IPO price of 20c per vendor’s Callabonna Uranium shares) and overall, the new merged company is truly over-valued ie. MC of $22m ( 2.2c @ 1b shares) – considering the company has no tenements of any proven resources of any minerals but do have some interesting tenements. This should not be taken over at IPO price of 20c (based on existing nos. of vendor shares) when the vendor has problem in doing a IPO !

This deal has the dilution effect to existing MKY shareholders and to me this is a “back-door” listing of the vendor company to the effect of gaining control of MKY !!! Thus, a win-situation for vendor only.

Future burnt rate of cash will be very high – my guess is that yearly wages is approx. at least $500k and if add-on the exploration expenses – yearly cash outflow will be not less than $1m IMO !

Funny trick had been played by the company to support sp ie. substantial shareholder notice is actually lodged by the company – the company should know better it has yet to be paid for it !

By the way, SK Energy is only taking up shares int the new merged company at 1.66c with 60m free options at exrcisable price of 2.5c (not subscription price of 2.5c ps as calculated by someone) !!!

I know this post be will again be shot down by the notorious NLR & Kelp2 who are strong supporters of MKY – HC should not allow these posters to shoot down the throats of any poster just because they have a different view that happens to be different from them !

DYOR - IMO

AoA