Ok,
so I was talking this morning about LKE and mentioned I would likely tip it this evening.
Just started to look into it for the background research. Thought I’d got lucky and found something good to contribute.
A small MC with only 100M SoI. Bugger all cash, but again admin costs WAAAY WAAAY down, so here I was thinking frugal directors, great.
Started reading their Notice of Meeting for their upcoming AGM.
Looks like they’re about to issue, upon approval, another ~250M shares on top of what they already have on issue.
Now 350M SoI normally wouldn’t be a problem. But that essentially increases their MC 2.5 fold.
That would still make only ~$17.5M MC, again not enormous BUT…
40M of those new shares are for the CR that had to come, but they’re being offered up wherever at a 20% discount to the 5-day VWAP of whenever they decide. And with the AGM happening 04 Oct……..
So as a consequence, I’m a little confused now as to why the big Vol spike yesterday and over the last few days.
Was it to get the VWAP up so as to raise slightly higher?
Or is it a genuine pre-emptive strike by some insider who has knowledge of what’s coming.
Either way, no tip from me.
But if anyone else might shed some light, I’m all ears.
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