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ADO

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2.9¢ anteotech ltd

Riverbrae - Snookered, page-12

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jak444

2,034 Posts.

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23/05/17

10:16

Post #: 24851589
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Originally posted by ds ↑

For sure? - ie have I seen the documents etc - No.

Confident? - ie did I ask 'way back when' - Yes.

Do I know the real details - No. Ages ago (when I realised we were reverting to funding choices like Bergen) I asked if there are standard exit clauses on failure to pay and was told there was.

It is not a situation you want to be in - it's like paying a deposit on a house and not being able to come up with the balance - the vendor is only motivated to recover the balance - not enough to cover your deposit so they can fire sale it if they want. In this case the value of the underlying asset has probably gone up and we have paid far more than a deposit so there would be a lot of cash in ADO coffers if this happened (my guess is minimum of $10m but could be as much as $20m in an orderly sale). If it was as low as 10m then the whole process raised capital @ 3.6c and if 20m then @ 7.2c and I presume we can all agree that ADO 'classic' has actually made progress on a lot of fronts so where does the SP end up? Best guess is 4-8c

Please bear in mind that I don't actually think this is going to happen (nor do I care for a debate on what it is worth - $10 & $20m are just rounded amounts) - I don't know what is going on but they are obviously working on a bunch of things and this is just a comment on what the outcome will most likely be in the event that whatever they are working on fails.

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Thanks ds

ADO Price at posting: 2.9¢ Sentiment: Sell Disclosure: Held
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