From here to infinity...shares?
Quote:
Originally Posted by
Lizard
By my (probably dodgy) calcs, they only need to write off another $7.4m of tangible assets and the placement holders get infinity shares... oh and then in November, apparently the ALF010 get to convert at a 5% discount to the approx 0cps share price that will probably equate at that time... so really this farce is just getting sillier.
So confirmed that nta for ALF is now negative.
Anyone else want to double check the calc?
Quote:
These investors also received a Price Adjustment Right ("PAR") to receive an additional number of shares in the company if the audited financial statements of the Group for the year ended 30 June 2011 establish that the net tangible asset backing (NTA) per share is less than 2.5cps after adjusting for the shares to be issued under the bonus securities issued in relation to the Hanover transaction. In the event that the NTA is less than 2.5cps, each investor will receive that number of additional new shares which, when added to the number of shares issued on 3 August 2010, is equal to the number of shares that they would have received if the subscription price per share had been equal to the NTA per share as at 30 June 2011 less 0.2cps.
Perhaps they have another out clause buried in the PAR agreement somewhere??? Otherwise, surely they would feel compelled to bring this issue more directly to the attention of the market?