This is a classic case of the underwriters bluff being called. The poor take up from the existing shareholders has left them holding the can.
Who in there right mine would stump up $30 million plus, for 2 marginal coal mines that produce 2 million tonnes per year in this market.
Having a large percentage of the underwriters being direct associates of OKAP has left them having to put back more money than they have stripped from the company over the years.
These assets have effectively been on the market for nearly 18 months, why now, are they all of a sudden in great demand?
Stage 1) tell everyone that a deal is imminent and cancel the issue.
Stage 2) remain suspended forever telling everyone that the deal is being finalized like the Vanmag iron ore deposit that they owned, I think it was nearly 4 years.
Shareholders, should make them stick to the issue.
Make the underwriters stump up the money. This is the main point for ASIC.
CCC Price at posting:
2.0¢ Sentiment: None Disclosure: Not Held
