Originally posted by Samboy69
Booom,
1.3M swiped on ASX the whole line at 5.8c and 5.9c in minutes
Soemone is desperate to get in big before the announcement of the rights issuances in the next 24 hours.
forward indicator ChiX hitting 5.9c as we speak on large volume
ASX hitting 5.9c bids now with 15M volume
total volume looks to be a record so far 23M and counting.
The INSTO buyers seem insatiable.
LOAME from Switzerland is a major new INSTO scouring the globe for cheap nickle projects and got into this one.
How is it they have issued a substantial holders notice of 6.2% with 80M shares implying a 1.2B share register but the shares for the shortfall rights issuance havent been issued as yet so the register is not 2.5B yet, did LOAME buy 80M on market as they have not been a top 20 holder so had less than 1% as at 2017 AR, I had presumed they bought the 80M as underwritten stock from Petra on the rights at 5.0c but this may not be the case on closer examination.
@zebster must know.
Follow the leader, LOAME of Switzerland
Remember Credit Suisse, Forrests long time bankers are also from Switzerland, is there a connection?
Who else is buying cheaply silently and hourly here with 1M blocks
Insiders have bought a large chunk of the rights shares and looks like other non retail INSTOs flooding in,
A legit breakout is in motion. Maybe to 10c or 20c , I doubt 40c unless.... fredy or haka18 are right.
With Dennis and Forrest on board, anything is possible.
Whoa there TsS, Whoa!
Let's back up a little and look at the LOAME question with a forensic mindset.
Firstly, nice spotting re- the apparent LOAME discrepancy. I saw the 603 this morning, but I didn't make the connection with the discrepancy that the 80m / 6.36% implied. Nice job.
Short Answer:
- I'm pretty confident that this new LOAME holding is the result of an acquisition made through the bookbuild, via Petra (i.e. 80m @ 5c = AU$2m). I also think that LOAME will
not be a substantial holder because it will
not be 6.36% of the new issued capital base. Their holding will be more like 3% (i.e. 80m / 2,638m shares). Basically, I think they have
jumped the gun and in doing so, have used an
incorrect total shares issued denominator when doing their math (see below for details).
The substantial shareholder threshold nowadays will be ~132m shares (i.e. 2,638m x 5%) and 80m is well below that.
Memo to LOAME: Thanks for the Form 603, but not required. The intel is nice to have, though. Many thanks! (They're gonna need to lodge a Form 605 'ceasing' now...)
Long Answer:
- Was it an on-market acquisition? Doubtful. The notices states a Date of Acquisition of (Tues) 18/09/18, but there was simply was
insufficient recent volume (ASX and Chi-X) to allow that to happen - even if you spread it over several trading days.
- I also wondered whether it might have been an unrelated off-market inter-related party (non-cash) transfer, but I don't think that's the case either. IRESS reports the current Top20 list (last updated 31/08/18) and the only two possible candidates with sufficient holdings (prior to the original sophs placement and subsequent rights issue) were Forrest Family Investments (120m) and JB (85m). We know neither of them would be the counter-party to any such transaction.
- I think the person who completed this Form 603 made
two errors:
1) The AU$2m listed as "non-cash" consideration should have been "cash", I think. I suspect they got confused between the concepts of on-market/off-market v. cash/non-cash. The bookbuild was an off-market cash transaction; and (more importantly)
2) This 6.36% shareholding number is based on the
superseded 1,258m total shares on issue immediately prior to the rights issue placements (i.e. 80m / 1,258m = 6.36%). I suspect that the person filling in the form simply looked for the most recent 3B to obtain the current total shares on issue, without understanding the broader context. If they had only until after this afternoon's 3B had dropped and based their calculations on it then this apparent confusion would not have occurred, imo.
- I reckon this is just a good old-fashioned human stuff-up. I thought the Swiss were good with numbers...
(20min delay)