The debt is massive and with the very high interest will have blown out. I would expect the dilution to be 90% + Also the company must and will be privatised to make the savings that are needed. An unconventional TO is on the way, the new company will be listed briefly and then minority share holdings will be compulsorily acquired as is the right of the new company at the 90% threshold under ASX rules. The amount offered for the remaining shares will be minimal. If 90% has not been achieved the new company will launch an RI that no sane small shareholder will participate in. That will be the final dilution needed to hit the TO, compulsory acquisition target. After that, they will delist and operate as a private company. All according to plan, the loan was crazy and designed to seize control of the company from shareholders in my opinion. But what else could the directors have done at that stage? Their stuff ups caused the financial destruction of the company and we were only told when it was far too late.
My opinion DYOR
VXL Price at posting:
11.5¢ Sentiment: Sell Disclosure: Not Held
