Still digesting the news, but a back of the envelope calculation says that only approximately 190m shares have traded since the suspension. That means that 250 m shares at an absolute minimum are sitting on a loss.
The big question is: what will happen if a no vote occurs?
a) we go to court
b) a revised offer
If this is the best offer that management can get; then option a) is looking good. The fall in SP from 8.8 to 2.1 due to the suspension; plus our cash in hand is worth more than this 'offer' that places no value on the assets of the company. In my mind; it is a small compensation payout with the entity thrown back for free.
MEL Price at posting:
5.1¢ Sentiment: None Disclosure: Held
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