1. If Abbotsleigh (Gandel), holding ~41% of the ordinary shares, exercises its ~70m options which expire on 11th December, the voting power would increase to ~54% of the expanded capital base.
Because the increase of 13% is higher than the '3% in 6 months' creep provision, it would trigger the need to make a full takeover offer.
Not quite sure how the board could recommend the proposed 'capital reduction' scheme with a clear conscience given the value to shareholders* is inferior to both:
(a) Giving to Gandel what is Gandel's, i.e. paying off the $1m loan with AYC scrip, then distributing the remaining AYC and AYCO in specie to shareholders, and winding up the company.
(b) Realisation by putting AYC and AYCO on market, even discounted to $0.035 and $0.015 respectively.
I wonder how it will be spun in the 'I'ER...
In commemoration of the one year anniversary of Medcraft:
"A person must not acquire a relevant interest in issued voting shares in a company if:/
because of the transaction, that person's or someone else's voting power in the company increases:/
from a starting point that is above 20% and below 90%."
(*excluding Abbotsleigh)
ORS Price at posting:
1.6¢ Sentiment: Hold Disclosure: Held
