Chelkn
Thank you for your informed responses.
I have read in some detail the Scheme Document and it seems there will be a share consolidation, 1 for 20, this will bring the shares in issue down to circa 120m, my guess is there will also be a fund raise soon after, almost certainly bringing in one or two institutional cornerstone investors.
Consolidations are not liked by investors on AIM but in this case I fell the low free float will assist and potentially drive a re-rate. If the company is promoted correctly, assisted by regular news, it could drive the stock far higher than many (myself included) believe.
I spoke to Marcus Englebrecht soon after his appointment, he seemed engaging at the time but tried to play down the new hope that long suffering Stratex shareholders had in him. Before this deal was announced there were a few social media comments suggesting he was a poor deal maker. That has certainly rung true in what I consider to be overly generous terms of the Crusader/Stratex merger.
What he did tell me, very early doors, was he had been speaking to institutional investors about Stratex, my guess is he has them lined up to put in cash and support the new entity via an equity raise. This might be well received depending on the price they come in at.
As far as the remaining Stratex directors go I feel they will retire, the Board is very thin on the ground and ageing, only Englebrecht is full time apart from the finance guy who is past retirement age. The rest are Non Exec's so I would expect the Crusader board to be principally behind the Newco. That pleases me as they do own a large slice of stock.
I am becoming a little more optimistic, we really do need much more information to make informed decisions on the forward investment proposition. If it is good I may add to my position after re-admission, I am sure others will also. It might even be worthwhile picking Stratex stock up now at around 1.4p, I see there were a few buyers around on Friday and no sellers.
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