Australia's largest stock trading and investment forum Australia's #1 stock forum

MRM

Click for more information

0.00%

33.0¢ mma offshore limited

Hi V_H. This scenario makes some sense indeed as does the...

First 19 Last

Share
Profile

Follow
Austinhealeysprite

896 Posts.

6

23/06/16

07:39

Post #: 18098648
Share

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

Expand

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

Reply

Top Stories

Chaos reigns markets – so let's take stock of where we're at ahead of December

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

WC8

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

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MIN

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

There are more pages in this discussion • 7 more messages in this thread...

First 19 Last

Add MRM (ASX) to my watchlist