show me the money

So this is my take on KRB.

1. We have always been promised deals which will be designed to improve shareholder value.

2. The company did very well to sell the phosphate assets to ANB for around $12mil

BUT

then things went downhill

3. I think a lot of shareholders were expecting a return of capital/special dividend. Another common sense idea to increase share price would have been a share buy back. Buy the shares cheap at 5-6c and re-issue capital later at say 10c.

4. The exact opposite happened. Having just received 12mil in the bank, directors decided to do the exact opposite. Issuing bonus shares at a discounted price is more or less the same as doing a capital raising at a heavy discount. You're issuing more shares at a discounted price hence diminishing price of existing shares. There's no real benefit at all to shareholders. For every new share you get cheap at 5c, the existing shares are diminishing in value. So all it does is raise more cash when people exercise their options and pay for new shares at 5c. And this is a company that just received $12 million.


So why would a company where the directors hold very few shares effectively raise more capital having just received $12 mil??! Really wish I could write more on that but the post will get probably get removed.


What I can say for sure having checked the share registry is that this vote will be incredibly interesting. Suddenly, the directors not having many shares will work against them because they have very little voting power.


And the main shareholders, the top few hold around 5%-6% each. The share registry is absolutely wide open.


Personally I will be voting yes to all 3 resolutions. I don't like what current management are doing. I really like the initiative of an extraordinary meeting being called. And after all, I would finally like to actually get some reward & get my 5c back rather than supposedly being rewarding with having to put up 5c to get more shares.


In fact, I'd almost take things a step further and just say wind up the company & give me all my money back. For a large chunk of the last 12 months, the shares have been trading at sub 6.5c. A ridiculous discount to the cash backing. I don't know you lot, but do you feel rewarded??? I don't!!


I'm only speculating here, but I wonder if this is an attempt by Dr Leon Pretorius to take control of the company and do exactly that. Wind up coming & fully return money to shareholders. If so great!! I'll get at least 11-12c then, can't get that on the market and haven't been able to for ages.


A bird in the hand is worth 2 in the bush. and KRB trades at a massive discount to its cash backing. Close down the company and give me a certain 11-12c cash because I'm sick of the company doing nothing to increase my shareholder value and actually making decision to dilute it further.


Worst case Dr Leon Pretorius wants 5c back for his shares and so do I. Hopefully even if resolutions 1 & 2 are a failure, resolution 3 gets over the line and finally, finally, I get some reward.


At the end of the day we're shareholders & share price/returns is what matters to us. None of the decisions the current directors are making are helping that. So let's try something different