Just thinking and please correct me if I'm wrong....
SP currently holds 19.56% or 36.4m of CSDs' 186.1m shares on issue. If SP were to exercise their 23.7m unlisted options then that would take their holding in the company to 60.1m out of the new 209.8m on issue. This would represent a 28.64% holding in the company.
Then wouldn't they have to lodge a takeover?
Interestingly enough, if SP take up their full entitlement of the rights issue, then they'll have 43.68m shares out of the 223.3m on issue which would represent a 19.56% stake, the same as what they have now....
As for the $300,000 to pay back SP for the loan which it states in the use of funds, CSD only had 199m cash on hand as of the end of the march quarter. Maybe they've drawn down some of the 1m loan on offer from SP this quarter, as estimated cash outflows for June quarter was $700,000.....
CSD Price at posting:
5.8¢ Sentiment: Hold Disclosure: Held
