Very true kastin, the BOD of these small companies are almost onto a hiding for nothing going into a drill, unless everything goes perfectly.
As you say, if you raise too much, people will moan, if everything goes wrong, then you didn't raise enough. Hindsight is a great thing, but prior to the drill I thought they had played it perfectly. Unfortunately there is no way to legislate for these sort of things where almost everything goes wrong and you get that size of an overrun.
I'll also be looking for the bidders statement, I'd like to see the proposed salaries for the new entity. If my thinking is right, I expect Bob Cassie to get a pay rise, as I do with Scott Spencer.
Its a no brainer for Bob Cassie to be honest, practically no shares for a CEO (about 70k) and the ability to gain exposure to more assets, whilst also potentially increasing your salary. Unfortunately for us, is that whats right for him, may not be right for a shareholder.
I would like to see some detail around there reasons (I hope there will be more detail than in the merger letter) around why this is the best finding solution for JKA holders.
JKA Price at posting:
8.6¢ Sentiment: LT Buy Disclosure: Held
