Lets do some calcualtions:
Bought: 13,000,000 @ 65c = 8,450,000 AUD
Sell: 13,000,000 @ 60c average = 7,800,000 AUD
Loss: 650,000 AUD
That loss bought them:
6 warrants per 10 shares = 13,000,000 x (6/10) = 7,800,000 warrants exercisable at 75c.
To cover their loss they need the share price to go to:
(X - 0.75) x 7,800,000 = 650,000 [or X = (650,000/7,800,000) + 0.75]
X = 83 c
So basically, they think its either going to be a $1 at some point in the next 3 years (now 3 years is a stupid amount of time, but lets not dwell on that) or they will take a loss of...
(650,000/8,450,000) x 100 = 7.6%
on their initial 8,450,000 AUD investment.
Now I dont know about you, but if someone came a long to me and said "Hey, pay me 7.6% of your total investment in AJX and I will give you a completely derisked 60% of that investment which you can wait for the whole expansion period of the company before deciding if you take it or not" I would probably take it.
Cant blame them. Money speaks and money rules in this game we play.
(20min delay)