>What benefit is there possibly to shareholders by being part of...

>What benefit is there possibly to shareholders by being part of an UNLISTED company?

You still retain ownership of the company, entitlement to any dividends, and voting rights. The 'notional' value of your shares might increase but you may have difficulty selling them to somebody else.

>>Can someone put any positive spin on this or am I going to lose half of my life savings??!

The only positive spin I can see, is that the company believes that it is undervalued on the ASX. Let's say it thinks that it is worth 10c share, but it is trading at 3c. If the company wants to buy an asset by issuing shares, then it would have to do so at 3c. By going off market, they could issue less shares by valuing themselves at 10c.

But!! You lose:
1. Liquidity
2. Transparency - it will be much harder to monitor the companies cash-flow and balance sheet.
3. Fund raising capability. In my view it is much easier for a listed company to raise capital than unlisted.

MWE only has $4million left, and they spent $3million in the last half. This points to mothballing projects and having to find partners to help fund them.

I would get hard answers from the board about section 1(b) of page 7 of their Half Yearly report:

"The ability of the Company to continue to adopt
the going concern assumption will depend on future successful capital raisings, the successful exploration and subsequent exploitation of the Company’s tenements and/or sale of non-core assets. The Directors are confident of securing funds if and when necessary to meet the Company’s obligations as and when they fall due."


How does the company intend on carrying out capital raisings?
They are going to need to sell assets - which ones? How much for?
How much will it cost to bring Kapulo into production?
In what timeframe?

Is the company worried about a takeover at a low price?


Joel