I think the common attitude of TNG shareholders is that the resource and SMS (TiVAN) provide the fundamentals of a hugely successful operation. However, a lot of shareholders are now rather suspicious of the integrity of our board. We are waiting and hoping for Finance to come through but not prepared to take any additional chances.
The recent use of a shareholders' agreement (from the previous AGM) to issue 90 odd million shares at a 20% discount one week after a 49d was lodged has a bad smell. Normally anyone wanting to get into the company for that many shares would cause the SP to skyrocket if buying on market, or would pay an agreed premium if arranged with the board. Also, a large discount was needed to boost the new shareholder's holding sufficiently to outweigh the votes of the shareholder calling the 49d - and the final margin in favour of the director was only a few million votes, less than 10 million, I believe.
It is impossible for us to know whether there was good reason (other than the protection of a director) for that share placement - but it sure smells bad on the information we have been given.
TNG Price at posting:
10.5¢ Sentiment: Hold Disclosure: Held
