this smells funny

I stupidly bought a small amount of KBL before Xmas when they said they had signed a term sheet for US $21mil.

That term sheet was Non binding and subject to Due diligence and everything else. Ive just sold out as the revised SPP at 3 cents last Friday made me think why would you revise this if you were about to get $21m US? Wouldn't you just pay back Kidman and then do what else you can with the balance? Why push the shares lower with a new SPP?

Now the KBL board have gone to the takeovers panel about Kidman? Kidman surely aren't in a position to bid for KBL?

This looks desperate and makes no sense. Do they want a bid from Kidman to save them? Please tell me if I have it all wrong.

I fear the worst and have sold down as a result. If these guys don't get that $21m asap its game over and the company is gone to the administrator and shareholders get zero. What's salvaged from the wreck will barely be enough to pay the Kidman debt.

My broker also said that KBL's MD Brian Wesson hasn't got a very good track record if you look at his Fiji Gold company and his Sth Korean tungsten company. Both were failures. If he is supposed to fix up KBL after years of wasting money it now is starting to look ominous.