Well managed to speak to both Peter Landau and Tony Eastman to talk about the "potential Joint Venture, options and a general update" that has been released in the past 2 announcements and to be honest I do not like the tone in the reponse.
On the topic of Joint Venture, its more excuses like "you have to look at South Africa and workings there can be slow" and "we are progressing really well at the moment" and "I believe that a resolution to all parties can be achieved in the coming weeks". I note that Peter Landau is like a junk car salesman, if there was indeed something on the short term horizon he would have been all over it. Rather his tone was diplomatic and there were clear pauses in his answers indicating that he is trying to come up with an answer but also leave the matter open.
On the issues of Options both PL and AE did not comment but just reminded that the options will lapse on the 31st and trading will stop on the 24th. If the options did lapse out of the money they mentioned that the board will have a discussion. They did say that "they hope the options will be in the money" before expiry. I pushed for an answer to see if a potential "extension" could be offered and both responded that "it will be looked at but no promise can be made". My interpretation is that "if its out-of-the-money" then anyone holding it is stuffed.
I pushed the raised issue that there is talk on forums that "legal filings" could be on its way if the options did lapse worthless since there was a 4 month suspension and holders were not properly informed, and both PL and AE were very quick and decisive in their response along the line "NKP has been clear and upright in their continuos disclosure. All the announcements are made to shareholders accordingly. The case that NKP had any intentions of withholding or not properly informing shareholders is utter rubbish". From the whole conversation this had the most conviction in tone.
On the general operations, NKP says that cash burn is only on staff costs and that they have enough money for at least 12-15months even if they get no money from the options conversion. Both PL and AE were very adament that no capital raising is on the short term horizon.
I have only less than 50,000 shares remaining, with some flicked out today. With market turbulance expected I am going to sit on the sidelines for a while.
I am glad to be proven wrong and all the "faithfuls" to be correct in their optimistic views.
Good Luck to all shareholders, and even more luck to option holders.
NKP Price at posting:
23.5¢ Sentiment: None Disclosure: Held
