I have no additional info to what anyone else has just doing normal deducing as to what Springtree and Sin Tang would do. For a start Springtree are not an investment firm period! They are in the business they are in to make quick money. We have fallen from 7c to 5.4c since the Springtree announcement. I see a floor at 5c which is the issue price of the last rights issue and possibly some loyal fwl holders will find some extra money.
I have seen Springtree and companies like them annihilate small juniors share prices doing exactly what they have done with fwl. Don't forget that fwl was trading at 13c when the Springtree deal was announced! Then we start issuing them shares for cash at a 30% discount and guess what happens to the share price? Back to 2008 lows! Have a look at DYE if you want to see a company hooked on Springtree's money and what it has done to their share price!
It is plain to see that fwl's average volume is very low and that Springtree being issued almost 3.5M shares AT 3.9C when the share price was 7c was going to put downward pressure on the share price. My estimates were that those shares are around 6 weeks of volume!
As for the statement that fwl loyal holders are tapped out well that is my personal opinion from buying action below 5c. FWL did not have too many buyer between 4.4 and 4.6c and the price looked to be going lower to maybe sub 4c. I was the net buyer in that area accumulating an additional 1.2M shares. There were not many buyers breaking their necks trying to jump in front of my bids! There was no way I was going to let opportunist sitting at 3.5c get any shares until I was tapped out. So when I see a perfectly good run in the share price derailed potentially for months because of the Springtree issue of course I see the downside to the transaction. I am a firm believer that we are in the early stages of a bull market. But before the markets continue to rise they must correct the rise of the last 3 months thus my short term bearish view of FWL especially noting the Springtree share overhang.
As for Sin Tang, it appears blatantly obvious to me that they either stay invested or exit fwl. Their buy in price was 15c and the chart shows a resistance area at 14/15c area. So if Springtree want out then that would be the logical place to start selling. I'm assuming that the reason Sin Tang invested in fwl was because they had other plans for them especially in light of the November vote. I think the Taifeng deal is probably a deal breaker for Sin Tang and they will look to get their money and invest in other companies similar to the fwl story like pdy etc.
LCG Price at posting:
5.2¢ Sentiment: LT Buy Disclosure: Held
