hi, can someone please explain what on earth is going on with this company please?
i'll try keep things simple, from what I understand RSG have lent them a lot of money ($85 million). in return NMG must pay coupon payments semi-annually of 7 or 8% to RSG and RSG will have a heap of shares issued to them in 3 years time at 12c per share.
why on earth is the company still only trading around 6.3c??? surely if you effectively do a massive placement which almost doubles the size of the company at double the price it should goes up heaps? Do RSG have the choice between taking the shares in 3 years time or asking for the money back from the loan??? is that the problem??
what have i missed??? It looks like one of the directors Tunku Naquiyuddin has invested at 12c because he's paid $48,000 for 400,000 shares based of friday's announcement.
I don't think stock is dual listed, but if anyone has the bloomberg app, check code 59Y:GR. it went up 35% on friday. where the hell it's lised, i dunno? GR: germany maybe??
there was rumours on hotcopper that RSG where trying to force down price from 10c to 6c so they could get the shares issued at a cheaper price. to be honest, that made sense, however now it's clear that hasn't happened so why this company it's going back up toward 12c I don't follow???
please help!
NMG Price at posting:
6.2¢ Sentiment: Buy Disclosure: Not Held
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