JTL recently issued 250m options to repay its $3.25m debt, the transaction indicates the debtor accepted 1.3c/option to settle the debt. The real cost of the option is now 30% higher than JTL’s SP @ 1.0c. Never ever seen this happen in ASX.
The exercise price for the option is 1.5c, so total cost per ordinary share to the debtor is actually 2.8c per share, Which is nearly triple JTL’s current SP 1.0c.
if the debtor selects not to exercise his option in next few years, he will lose all of his $3.25m , so it’s unlikely to happen. Meanwhile the transaction confirms the huge confidence of JTL’s largest shareholder/investor for the company’s future.
The fundamental of JTL is improving and the company will be profitable in 2023 as the business already returned 2 quarters profitable in last 3 quarters.
considering it already has 3000 UK clinic customers base, recent JV with shine clinical to further expand, strong confidence from its largest shareholder, directors recently purchased 3m shares on the market, all in all, JTL now is significantly undervalued and 2.8c may be just it’s fair value.
Add to My Watchlist
What is My Watchlist?