Good afternoon,
I just wanted to post a quick update on the CUE Shareholder Group. Since my last post the group
- now represents over 45 million shares (around 6.4% of shares on issue)
- has written and discussed with CUE the potential for a share buyback
- is considering other alternatives to increase CUE's SP and liquidity
I wanted to take the chance to address "why a buyback" in a little more detail.
- a buyback provides flexibility for individual SH's to act in their own best interest.
- some SH's want to exit the stock- a buyback would give a price floor to allow them to do so
- some SH's want dividend- a buyback allows them to sell 10% of their stock while retaining the same level of equity in CUE
- some SH's want an increased holding in CUE- by not participating they increase their holding in CUE
- NZO/OG are very much in control of CUE and any proposal needs to be to their benefit also or they can just vote it down. A buyback in which NZO do not participate would effectively increase their SH in CUE. This may be attractive to NZO.
The group is still open to any other SH's who would like to join. (just drop me an e-mail
[email protected]) It would also be great if
@GlennR@projectorplus@kentbrock@FT86@wooshacould send an e-mail so I can provide the update to you.
Cheers
Don
