As I understand the resolutions in the Notice of EGM released today, the Board are asking we shareholders to totally refresh the 15% new issues cap, which equates to between 40M and 50M new shares they can issue, plus they want us to authorise them to issue up to 60M new shares (in the three months after the meting) besides. That's potentially over 100M new shares the Board wants to be able to issue in the next few months, separate to the 20% of the company they propose to sell to Kollakorn.
This is an extraordinarily bad look, as it suggests the operating cash flow forecast is extremely negative, with so many new shares having to be issued to keep the company afloat.
My request in my post of a few days ago about wanting to see the detailed cash flow since 1/7/10, the detailed cash flow forecast to 31/12/11, and an explanation of why Thailand seems to be making no difference to the company's ability to generate operating cash flows is now, in my view, more important than ever.
Sadly, I've got to say that, despite my long-held positive view of MIK's potential, and my confidence in the new CEO, the only conclusion that can be drawn from the resolutions to go to this EGM is that this company is looking more and more like a dog.
What do others think?
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