PLACE: NTL: NTL Signs Term Sheet with Chinese Investor
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PLACE: NTL: NTL Signs Term Sheet with Chinese Investor
Is this good or bad in the short term?
Yes investor to start work is great but the shares are going to be diluted somewhat?
https://nzx.com/files/attachments/214665.pdf
more capital raising, issue price of 0.7 cent
Any issue of new shares results in a dilution overall - there are simply more shares on register. If you are a current holder and you top up then your percentage holding may not dilute, however if you do not top up then the new shares issued to other parties means you effective hold less % of the company.
The short term impact will most likely depress the price, why would you buy on market for 0.9/1.0 when you know shares are being issued for 0.8 and 0.7? No brainer for current holders (unless you want/need more than $15k) - non-holders will need to consider if the diluted shares still offer value at the market price.
That being said, an overseas investor willing to put $1.46m into the venture after due diligence and a detailed review is a big vote of confidence from that investor. Opening up potential JV's could be (sorry for the pun) a gold mine.
Disc: holding.
My offer is going on for shares at 0.6 (well its worth a try), then will take the 0.7 too.
I read this the other day and thought of NTL.
http://www.zerohedge.com/news/2015-0...ng-gold-miners
Annoying.
Trade
Number (s)Time
Last TradedPrice Volume Change Value Number
of Trades1 10:00:22 am 0.8 3,000 $24 1
watch out we have a big spender here!...potential take over isit?