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33.0¢ mma offshore limited

Ann: Becoming a substantial holder-MRM.AX, page-19

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Austinhealeysprite

896 Posts.

6

23/06/16

07:39

Post #: 18098648
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Originally posted by Value_Hunter ↑

AHS,

another way of looking at this situation is:

the substantial investor has some idea of the capital requirements, and forward earnings power of the company,
they understand that additional shares may be issued,
they are willing to be a buyer if this is the case.

so lets say MRM raises circa 100-150m to get their bal sheet under control....
lets assume that its done at 20-25% discount to TERP.
lets also assume that sub holder is the underwriter !

essentially, they would end up with circa 15-20% of the company, at around 25-30c/share.

If they have a 2-3 year timeframe - they will make a more than satisfactory return (imho).

it also means that the current Board had better start "packing" their respective bags ..........b/c they will be asked (in the nicest possible terms) to get out of dodge !

the other way this plays out - is a merger with other OSV provider.....

I rekon opt1 ....so will simply wait for cap raise before entering this stock.

rgds
V_H

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Hi V_H.

This scenario makes some sense indeed as does the strategy to wait for the capital raise. Subject to the nitty gritty post CR the company will be de risked significantly.

Any predictions on when CR might happen?

MRM Price at posting: 30.5¢ Sentiment: Sell Disclosure: Held
1 Upvote

0 Great analysis

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