Well I am 1M and would vote against but don't expect to hold long enough to vote. I hoped to get a bounce short term but think I might have got in a bit early with it dropping again today on heavy volume, erasing the last months gains on higher gold price which made FML clearly profitable again.
If the takeover looks like going ahead I can not see institutional holders staying in, the share price will be at the whim of the controlling interest, and there would also be no possibility of a further takeover offer at high premium. I have never been invested in a company that accepted a takeover at such a low premium, after the price had been already been pushed significantly lower in the last 3 months while they were negotiating the deal.
The valuations I saw of the company were $0.08+ and highly leveraged to the price of gold and any cost cutting. With a 51% majority holder in control I see no possibility of realising that value, given a 51% stake holder acting under their own interests which will surely be to keep the share price low until they can take over the company completely. With a 51% vote they can vote to sell the company any time, to anyone for any price. If they do not do this they are not acting in the interests of their own shareholders.
My sentiment is barely a hold now, though I will wait for my 10% loss margin for now, or hope in an alternative take over offer which I still think is a possibility given the size of resource.
FML Price at posting:
3.7¢ Sentiment: Hold Disclosure: Held
