Good question. I find it extremely unlikely that the SPP will be extended again. Many companies extend their SPP date once thinking that they have just been the victim of unlucky timing the first time around. They would be foolish to roll the dice a third time as it smacks of desparation and the chances of success drop each time.
I think the "where does that leave samson" question dependant upon their motives for the SPP which have been unclear from the outset. It always seems odd to tell the market that you are negotiating to sell millions of dollars of prime land then turn around and ask for cash from shareholders as well without clarity of direction.
I've been closely watching many companies which I have holdings in over recent months and see similar behaviour in a number of them. If I were to take a guess I'd say that companies with marginal or negative cash flow are desparately trying to shockpile enough cash to keep them afloat through the next round of the cash crisis. I suspect fear is returning in the DFO ranks as alternate funding sources are not materialising.
SSN Price at posting:
3.3¢ Sentiment: Hold Disclosure: Held
