Hi bubby, I probably haven't explained the idea well, but the rationale behind it is that Old Tiger (the tiger we are shareholders of now) remains listed and resumes trading on the ASX. The ASX listed company we own shares in (which I refer to as Old Tiger under my scheme) will end up owning 40% of the shares in New Tiger (which the mine and plant and remaining debt will be transferred into) with the other 60% of shares belonging to the current debt holders who convert debt to equity plus additional shares issued for the working capital that is going to be needed to get cobalt processing up, mining resumed and production back on track.
The idea is that we shareholders in Old Tiger (which becomes a holding company owning 40% of New Tiger which owns the mine and plant) can continue to trade our shares on the ASX but all the shares in New Tiger (40% ($100m) old tiger, 40% ($100m) debt to equity swap plus 20% ($50m) new equity raising, will have their shares in New Tiger in escrow for two years to give New Tiger the breathing room to get the actual operations on their feet and the cash flow in place to pay down debt.
Our existing Tiger becomes Old Tiger and just a holding company holding 40% of New Tiger. Old Tiger remains listed on the ASX and resumes trading. We are free to trade our existing shares. Old Tiger and the other new shareholders (including debt holders) can't sell any share in New Tiger (the new owner and operator of the mine and plant) for two years.
TGS Price at posting:
4.9¢ Sentiment: Hold Disclosure: Held
