JH and team have to offer instos something to entice them to come on board. A discount to VWAP on the back of pre-spud essentially de-risks the SP against an Artemis failure.
It's about risk management of the company over the long term.
The people most disadvantaged by this strategic move were those who were looking to bail before spud - i.e. short-termers.
While it's frustrating as it means short term SP weakness, I have held MEO shares before, through and after Zeus and I have nothing but respect for the Management team.
If Artemis is a duster and need I remind you there is a 68% chance of this according to industry standard estimation practices (all personal opinion aside), 52c will look like an excellent premium on SP.
MEO has many other prospects if Artemis fails but will be at high risk of SP price weakness and manipulation until the next prospects are readied up. Instos offer a measure of stability to the SP and helps deter DT as they have a larger inertial force to deal with.
just my 2c
heres the private and confidential term sheet , page-40
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