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AB1 abarta resources limited

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also it’s based on market cap rather than share price so...

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Scott321

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01/12/21

18:54

Post #: 58004105
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Originally posted by frontline1999: ↑

For those who are confident that all 4 performance milestones will be achieved, it means that even if the total shares on issue balloon to 2b from the current 1.49b, each share will be worth a minimum of A$14. That is the upside of a US$20b market capitalisation (3.5x gains).

This values Yat's future performance rights (resolution 7) at A$1.25b at the point of the 4th milestone being achieved. I'm all for incentivising management/leadership, but a A$1.25b five-year package for Yat, whilst shareholders will only receive 3.5x gains on their current holdings, is not remotely in the best interests of shareholders.

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also it’s based on market cap rather than share price so encourages as much dilution as possible through capital raising. Not that raising capital is bad but shouldn’t it be based on share price so that unnecessary dilution is not encouraged

AB1 Price at posting: 18.0¢ Sentiment: Buy Disclosure: Held
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also it’s based on market cap rather than share price so...

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