Hi girls and boys,i've been following KRB for awhile now and...

Hi girls and boys,

i've been following KRB for awhile now and hold the stock. this weeks share purchase plan announcement on the surface seemed bizarre, but i'll throw a few ideas/scenarios out there which hopefully might shed some light upon the situation. feel free to disagree or agree, they're just ideas.

A few holders on hotcopper have been complaining about Bergen receiving shares at a discount. i'm netrual on this, KRB needs money as a going concern. not much cash at bank so they've gotta do something. possibly in response to this the company has decided to offer shareholders the same opportunity.

I think even if the Daton deal becomes binding, actual settlement probably won't happen for awhile, hence they need money in the meantime.

also, anyone claiming Bergen are selling on market to force down price, don't think so. i've checked settlement in IRESS, it's a number of different brokers selling and not just 1.

a couple of differnet scanerios:

Scenario 1:
deal with Daton doesn't get through, we're screwed!!! pure and simple. good luck selling for more than about 6 cents! lets hope not

scanerio 2:
announcement said they believed negoitations to be going well and deal to be signed in next couple of weeks. The 'believes' bit was slightly concerning, they should really know for sure if they are/aren't going well. anyhow, if deal does go through and is announced before 24th march, it is extremely good news. not only is deal done and they've got 12 million cash meaning they can cancel bergen placement, shareholders can apply for shares at 7.65c which should be a big discount to price at that stage.


so maybe the share placement isn't the end of the world. intially price obviously dropped sharply, but nothing has changed with this company. either it's a bargain at the minute if the deals goes through or we're up a certain creek without a paddle if it doesn't.

anyways, fingers crossed if deal becomes binding the company can get announcement out before march 24.

good luck everyone!!
cheers