Why don't you actually take a breath, sit back and actually understand what this deal is about. It is not about Management lining their pockets, it is not about day-to-day expenses, it is not about wasting the funds. It is about buying out the additional 6% of Starlight.
It is simple as that.
In my opinion, this is a strategic move by Management as they NEEDED the money to finalise the transaction. This was always known it needed to happen was it not? What was the alternative to getting the $10m? A CAP raise to us shareholders?? They would never have gotten the $10m in my opinion.
Hopefully LDA take the full 200% - because HIO will need the additional cash down the track. It will also set a floor price (of around 30c) until such time as they are out.
From my perspective, whilst it wasn't handled the best, we are still in a far superior position to what we were 12 months ago.
As shareholders we now OWN 100% of our company and don't underestimate how much of an impact that WILL have in JV discussions, as well as future Offtake discussions.
Management are doing what they needed to do to progress this project forward.
