things are starting to make sense now

Well thanks to the latest BRR things are starting to make sense.

JK has indicated that the Chinese are wanting to invest in RAU and the only scenario that makes sense is if the Chinese get X amount of shares for X amount of financial income. I can't see JK giving away any of his current shares to the Chinese so there is going to be an issue of more shares to the Chinese.

This is obviously going to lead to dilution but more importantly it explains why there has been pressure applied to the share to keep it down.

When the Chinese invest they will get a parcel of shares at a discount to the average trading price over a period of time. The lower that price is, the more shares the Chinese end up with.

That leaves us with two options.

1. We cash up our RAU holdings knowing that the SP is going to remain roughly in the same area until the Chinese get their shares. We can then use this money to invest elsewhere and then buy back in to RAU as soon as the Chinese deal is organised.

2. We take advantage of the artificial current SP to increase our RAU holdings so that when the Chinese do come onboard we are in a strong position to take advantage of the inevitable rise in SP once the capping is removed.