CSE – the best ASX shell play -$1m EV, page-5

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eieio

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20/07/21

18:04

Post #: 54638315
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Originally posted by tiryns123 ↑

Eieio I am sorry for your losses on KTE and respect your decision to sell CSE as the risk profile is not for everyone.

I do however believe the CSE and KTE situations are very different.

KTE management only wanted to hold a passive investment in Atomera and even applied to the ASX to be reclassified as an “Investment Company”. They showed no intent to be anything other than a listed investment vehicle and arguably a NSX listing with lower listing and compliance fees is better suited for this business model albeit at the cost of liquidity and a lower profile for existing shareholders.

CSE is different in that management absolutely intend to remain ASX listed and have outlined their strategy (asset acquisition in the mining or materials space) to remain so and are in the execution phase of this plan. They have also backed up their words with action & money in that management and insiders have also put considerable skin in the game to keep the lights on during the Canaccord led acquisition process. They stumped up a collective $1.2m including $150k of directors money at 9.5c in the February 2021 placement.

Canaccord are also highly incentivized to complete a deal as they were paid a $50k retainer and were issued another $100k in 14c and 17c options which are currently out of the money/worthless. If you look at the broker data they were also acquiring on market earlier in the year too. All in all they have a very strong vested interest in a successful acquisition for CSE and likely are up for a hefty success fee on top.

I am confident CSE management will deliver but I am also not too blind to the fact that there could be potential further delays and we may be temporarily suspended for a few months whilst the acquisition completes. It is highly unlikely we will be delisted like KTE given an acquisition strategy is afoot and management are actively reviewing assets. In the event we are temporarily suspended due to delays, then post completion of an acquisition we will exit suspension and continue trading as per normal, likely gapping up massively if it is a good value acquisition.

You have to remember our baseline market cap is protected by our 9.14m shareholding in SYR so if that begins to rerate our base value should also rise.

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Hello there tiryns123

Thanks for your considered comments. Nevertheless I shall watch from the sidelines for now.

cheers

Macca

CSE Price at posting: 8.9¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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CSE – the best ASX shell play -$1m EV, page-5

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