Nine lives, I think you are right as what the best strategy is for the company
"Of course the best scenario of all for those of us with heads amd no ops is to let the ops lapse and then in June crank he SP skyhigh with a flurry of news and upgrades. then do a placement at 20c instead of 10c. Same funds with half the dilution."
The reason why this is the case is that management also have executive options. so while cash will be obtained from exercising the options, the company and exisiting shareholders would be better with less number of shares on issues, particular for the executive option holders as their options expiry after 30 june
Issuing the shares to 'sophisticated shareholders' is another name for friends. they could also do a convertiable note issue as well.
But as has been said, MPO while long term is driven by fundementals, the short term is driven by announcements of reserves etc. 31/2 months isnt a long time so they can delay announcments etc.
sorry but given the risk reward relationship at present the options arent worth the risk, shares are a better bet.
MPO Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
