The latest conversion gives LJCI an additional 2.5 million shares at a cost of (A)0.964c each, in round figures.
What is more concerning, in my eyes, is that there is still another $(US) 1.375 million to draw down and/or convert. At current exchange rates, and sp, this would give LJCI a further 150 million shares, again in rounded figures.
As they are constrained by the % shareholding that they will not exceed I assume that LJCI will continue to feed shares into the market, accepting a lower profit margin but continuing to depress the sp. The alternative is for LJCI to temporarily stop converting and fund further draw downs from other than INL share sales.
Again in round figures the SP is down 93% LJCI came on the scene and 66-75%, depending on where you set the bench mark, since the consolidation.
Given that the total shares on issue would be around 350 million if LJCI do convert and sell all that they can I cannot foresee another consolidation irrespective of the SP. I have, however, been very wrong before with this company so anything is possible.
Best wishes,
TerryA
SDV Price at posting:
1.1¢ Sentiment: Hold Disclosure: Held
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