You'll note that this article discusses schemes of arrangement...

You'll note that this article discusses schemes of arrangement in relation to bankruptcy and insolvency. This is what schemes of arrangement were originally designed for, and the corporations act places schemes of arrangement within the provisions for receivership and administration. The original intent of these things was that they would be used if the creditors of an insolvent business felt that they would get a better recovery from taking over the business as a whole rather than breaking it up and selling the assets. The shareholders could be offered some consideration in return for handing the business over to the creditors. This is why the whole thing is presented as take-it-or-leave-it. And typically the expert's opinion only needs to find the offer "fair and reasonable, or if not fair at least reasonable". Getting offered a scheme of arrangement by creditors - just like the rest of the receivership process - is going to leave you feeling badly pillaged.

In the last few years takeovers by scheme of arrangement have begun to be used outside of creditor actions because there are fewer hoops and hurdles to clear than the more traditional on-market or compulsory acquisition takeovers. But they're still miserable things, leaving you feel like you've been hogtied and plundered.

I'm interpreting the sell orders at 11.5c as the entirely sensible response from anybody who bought below that price. It's a no-lose position to take. Either sell on market at 11.5c or get paid 11.5c on completion of the takeover. Since the announcement on 11-Apr only 49 million shares have changed hands, which is a very small proportion of the registry. By comparison, over the roughly 11 months from May last year to just before the Covid19 results were announced nearly 390 million shares were traded at an average of roughly 6c/share. Now obviously the same shares will have turned over many times, so that doesn't mean that there are 390 million shares out there that were bought at 6c, but I still think it's encouraging to see only 6 million shares at 11.5c. It could be 40 million!

Another thing to consider is that the daily volume is not driven by traders selling at 11.5c and buying back at 11c. Look at the course of sales at the end of each day. Less than 1% of the volume is priced at 11c. Today, not one single trade occurred at 11c. The volume is overwhelmingly holders accumulating at 11.5c. Again, I see this as a very positive sign.

I believe that once the takeover is knocked off the lid will be lifted and who knows what price we could see? It could top 15c!