Still trying to figure out whether this is positive or negative.
First, does the 1:1 mean for every share owned you can buy an extra share...ie.a big share purchase plan?
Second, Australian Gold Investments LTD is a private company. Would be keen to know how they got the lease. Seems like they are trying to gain access to the ASX by pesudo-merger with KAL...and due to the convertible notes...being in a position to control it outright...easier than IPO and going it alone I figure.
Although the 10cents issue price sounds bad, the attached option raises that a little. Also, I expect a few announcements soon from Jackpot and Oklahama. Companies generally hold out on these type of announcment before issues...and if this is a large issue to existing shareholders, you sometime get interesting dynamics where the price keeps going up as people calculate the average price with the entitlement included. Seen it happen twice with QGC...that all assuming I've interpreted the 1:1 statement correctly.
Will be an interesting couple of weeks,
KAL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
