This is not good, too little too late. This asset is by far superior and they have been talking it up for a while now. They obviously are getting screwed by their partner so are trying to get out. They won't even recoup the money they have spent. The chances of allamanda having the money to even pay MNB a couple of million is slim let alone 30m. It would take a very aggressive investor to take over this JV from MNB as well. And by the time they can get a deal done management will have diluted the register even more.
I have said all along having 2 assets does not work. They should of done this a long time ago, it's a shame they couldn't work it out as they are now going to get the worst deal possible.
Having said all that at a market cap of 2m any deal could be positive for the share price but they are giving up any chance of getting this back to where it was let alone where it should have been.
MNB Price at posting:
1.4¢ Sentiment: None Disclosure: Held
