Firstly, that must have been why directors were buying recently to hold the price > 10 cents. Not too sure on the rules for doing so, but since every director had some sort of purchase in the past month, its either perfectly legal or a massive rort. I know what people on HC would say, since there is major negative sentiment. However if they did know it was coming then they chose to pay >10c on market.
Now onto the interesting part, the first come first served element. "acceptances will favour applications received in date order". "Directors reserve right to close the SPP early".
There are $1.5M or 15,000,000 shares available. Max amount being 150,000 per person. Thats only 100 people if they took up a $15,000 allocation.
Lets say those willing to participate chip in $5K. Thats 300 people till the doors close. If only the min amount of $750 was applied for, it would be 3,000 people.
From last years annual report, page 72 there is a listing of holders. Things will have changed since then, but its the only data i know of, so lets use that.
Lets look at the holders of larger parcels, 963 @ 10,001-100,000 shares. 125 @ 100,001 and over. (2,657 total holders across all categories)
So there are around 1,000 people (963+125) who could be prepared to enter into the SPP. I base that on it being large enough holders, who haven't sold out. If you haven't sold out then there must still be some belief in the company, if there is some belief then in order to make it reality you'd consider participating. A 10c deal with a 20c option seems enticing enough.
"The Directors of Trafford intend to subscribe for shares under the SPP". So some will be taken off the table there.
With their recent buying don't see that they wouldn't, also shows confidence in the future.
There has been recent news, at last Lynas find (part of the initial prospectus all those years ago), may have someone take a look at it. Tin was unexpected, OGX is interesting, Twin peaks could be useful, Challenger target too. The real elephant in the room though is Ironclad. The SPP plan opens on the 22 May, wonder if IFE will get federal approvals by then? 11th Feb fast track was granted, and it was expected in under 3 months (which is today - 11th May).
Given the raising is relatively small, you'd hope that IFE gets the approval (soon), gets the funding (that will be the IFE and TRF share price kicker) and starts mining, with receipts flowing to TRF by the end of the year/early next. If so this SPP would be major bargain. If not, then it would be throwing good money after bad!
Its the financial loss that all holders must be sitting on that will hold them back.
This is an interesting company with lots of interesting prospects, but remains high risk. It needs one of the tentacles to start providing cash flow.
So now Im wondering what will happen to the SP in the short term. Current holders wouldnt purchase on market. New holders will have missed the record date so wont be elligble (and therefore wont create any buying pressure). There seem to be new holders coming on board whilst OGX is in trading halt, but not sure if that would continue when it comes out.
When SPPs are announced many stocks tend back to that price, though i was suprised this didnt happen with BCI.
At least its staying interesting / entertaining ...
Lets see where TRF are on the 22nd May (plan opens)...
TRF Price at posting:
14.5¢ Sentiment: Hold Disclosure: Held
