Ann: AWE Response to Dawney Notice, page-4

First 4 Last

Share
Profile

Follow
Al99

1,190 Posts.

88

20/06/17

13:29

Post #: 25380075
Share

Originally posted by jake0002 ↑

yes, so what it has done for the moment, is put a floor under the SP.
I thought the AWE response was OK.
I actually got it a bit wrong with the 95% contingent payment.
As AWE points out, It actually relates to the on-sale of the Option - not the shares. So as AWE says, s/h might not get any additional payments if Dawney exercises the Option, then on sells the shares.

But what the AWE response did not point out, is the credit risk relating to the Option.
Not only do s/h not get any payment for their granting of the Option, but s/h have no idea of the creditworthiness of Dawney, nor any idea of the creditworthiness of any 3rd Party who might acquire the Option.

What is the point of granting Dawney (or anyone else) the right to acquire your shares, and tie-up your shares for 1 mth - 2mths for NIL consideration, BUT also doing that and running the risk that Dawney or anyone else, might not have the financial capacity to actually exercise the Option ??

The ability to fund the exercise of the Option is simply not addressed by anyone.

cheers
(but it is an interesting proposal.)
it must focus the minds of other potential predators on AWE).

Expand

Jake

I think it is interesting and its bold, but it will have little success.

Why would you grant a free option over your shares when the options has clear, demonstrable and rising value.

As I said yesterday, it is just for show and an attempt to flush out a bidder.

AL

AWE Price at posting: 47.5¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

HotCopper Highlights: Your most watched stocks for Week 47, 2024

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

SIG

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

DUI

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

LPE

Sales growth pushes Lovisa's fortunes (and shares) upwards

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

PYC

Scientific conference spotlights PYC's work on blindness disease treatment

There are more pages in this discussion • 5 more messages in this thread...

First 4 Last

Add AWE (ASX) to my watchlist

Ann: AWE Response to Dawney Notice, page-4

Top Stories

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

HotCopper Highlights: Your most watched stocks for Week 47, 2024

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Sales growth pushes Lovisa's fortunes (and shares) upwards

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Scientific conference spotlights PYC's work on blindness disease treatment