Dont forget they only have an exclusive period for 3 months and then a further 30 days to complete the purchase.
So assuming they want to wait until the JORC compliant estimates are released to the market they will have burned 1 months time (anticipated release end of June).
Say the SP does spike, no Insto or serious investor would subscribe to a CR based on a 1 to 3 day spike. So you would probably need another month worth of trading at this new price for investors to be confident in stumping up cash at this higher price. (burn another month)
This is the best case scenario (concerning funding timelines) because you still have 1 month left of the exclusive period + 30 days to complete the purchase.
Worst case scenario for funding is that it takes Red Oct the whole 90 day period to decide to proceed. Then you have to wonder if 30 days is enough time to sort financing out and execute the deal without the company acting with disregard to current share holders.
ROS Price at posting:
35.5¢ Sentiment: None Disclosure: Not Held
