This announcement provides more evidence that Mawarid are serious about backing Sandpiper and UCL They are fully underwriting the placement at 30 cents, the price they paid when we are trading 20% below that.
Doubtles they will end up increasing their holding as a result as it is not rational for small shareholders to participate. However i expect the large holders (ie Twynam and MAK as well as Mawarid) to take up their entitlements. That should see around 60% subscribed, if some of the balance of top 20 take up the i suppose Mawarid will be left with maybe 30% of the balance?
Seriously, presuming approvals all come through, can there be any doubt that UCL is well placed to fund their share with backers like this? If MAK really are finding to so hard to attract backers then they would be best working with UCL to put the project under our full control on an equitable basis. Eg hotrods suggestion of exchange Sandpiper for UCL shares. That way they will retain ownership whilst picking up these wealthy committed backers.
UCL Price at posting:
25.0¢ Sentiment: LT Buy Disclosure: Held
