It won't go broke at this stage. In October and November last year Onterran raised $22.64m in those redeemable preference shares and it raised another $2.2m in December in the share purchase plan so it can hardly go broke right now. It certainly is disappointing that all of the old business is getting chucked out and the company will be concentrating on the Couran Cove deal alone.
Onterran should still give us its six monthly result tomorrow morning before the market opens otherwise it is a bit crazy that they can't even do the compulsory requirements. Obviously the result will be bad but they won't be losing all that money already.
GPASAS
OTR Price at posting:
31.5¢ Sentiment: None Disclosure: Held
