I must admit that I didn't think this would be a 'live' issue so soon (if I was Sprott, in a week or two's time, I'd drive the BGS share price below 40c at the close of trading for one day to break the 20 consecutive days... rinse... repeat).
In fact it's probably a lot easier than that. All they have to do is hint to the market (ie ring up Hartleys for a quote) that if they are 'forced' to take up the options at 25c then they will be inevitably selling them to realise any profit... The price would not stay above 40c for very long with that overhang looming...!!
Perhaps the company should offer to auction/place the 14m new shares in an orderly manner - and avoid the likely (albeit short-term) market melt-down that threat holds for us all. If Sprott is not a 'believer', that is 14m x 25c-40c that the BGS market will have to absorb. That volume is not unprecedented - but it is more the uncertainty that hurst market confidence.
Especially when there are also signs there is another big (aggressive) seller active (although it's all a bit hard to tell when the largest BGS shareholder may not be playing by normal reporting rules?)
It's not easy being green... (sigh)
BGS Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
