So, why would Kalahari fall 5.49% on 1.6m volume on Friday? Highest volume this year, double any other day's volume so far.
Is it possible that some shareholders have lost confidence that Kalahari will get approval to fund the next round of financing for Extract?
There are some games going on - and we are not being told what they are IMO.
Given that Extract is trading at $1 higher than the agreed issue price ($8.35) for the Kalahari placement, I would think that Rio and other major holders would be voting against unnecessary dilution - which is combined with a free kick in percentage terms for Kalahari's holding in Extract.
IMO Kalahari will need to increase their offer price for the placement, or the offer will need to be open to all major holders.
A machiavellen thought, would be that the mates in Extract & Kalahari arrange an increase in their offer price, only to see the price rise above the new offer, and we are back to square one again, and running short of money.
All commments welcome.
EXT Price at posting:
$9.40 Sentiment: Hold Disclosure: Held
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