Apologies if this has been mentioned previously, but just adds to my understanding of what has happened. I haven't been following this thread everyday, so may have missed if posted.
I bought in the day before the trading halt, so definitely missed the article. I thought is was worth mentioning part of the article in the Financial Review, 4th September, 2016, as follows:
"In April Taurus agreed to pay an undisclosed sum for Foxleigh before vending it into Realm Resources, which is 87.8 per cent owned by Taurus and has debt facilities worth about $180 million from Taurus.
Realm indicated in recent days that Anglo was paid $43.7 million in cash and $85.3 million in bank guarantees under the Foxleigh transaction"
I am curious, can someone advise what is a 'vending' agreement, as mentioned in the article above. Maybe Taurus still make money even if the shares aren't listed?
Given the current announcement, where management admitted:
"The Company completed the Foxleigh Transaction without having any preliminary discussion with, or seeking in-principle advice, from the ASX."
Tells us very clearly how we are where we are now.
Given, that it appears that management have tried many avenues and been refused, the ASX is absolutely going to follow the rules, as management just didn't do the preliminaries correctly.
I guess it is an idiotic question, but as Taurus owns 87.8 percent of RRP, I am wondering why the company is even listed, as do they really need a bothersome small amount of public shareholders? I guess there is a reason.
Another, idiotic question, is if the very major shareholder really wants it relisted to supposedly increase their shareholding value, then selling 7.9 percent of shares to enable relisting, would no doubt be gained back almost immediately and then some. So no real loss on the holdings in the end and value would definitely increase.
Maybe, only advantageous to be on market when things are going down, and exit then, after all Taurus is a fund management company.
I realise that Taurus tried to dance around the rules, by converting sufficient shares to 'Preference Shares' subject to shareholder approval, which is a tad ironic, as they are the major shareholder, by a long way, so sort of waste of time. The ASX refused. It seems clear that the ASX want 20% of the company owned by independent shareholders to the major shareholder.
Instead, we are now in a position, where more shares have to be issued, via a prospectus, when funds are not needed, and we have no idea to whom, yet, or maybe we have to pay more to get our money back by paying for the re-listing. How odd?
I guess if we don't subscribe, even if allowed to, our holdings will be diluted even further to another major holder, who will then be the second highest Top 20, which isn't difficult if you look at the Top 20. However, it will meet ASX requirements to trade again.
What an effort, for no real reason that I can see, but obviously things I am not aware of. I just hope it gets trading again so I can at least get back my original investment, and a decent additional return for the time the politics and idiocy has taken.
Cheers
GSM
RRP Price at posting:
4.1¢ Sentiment: Hold Disclosure: Held
