Kula took the risk on the project and you the board did the right thing to bring in a partner.Now the partner wants control without a significant premium.It's cheeky to say the least, but good business from their point of view as the project is pretty well de-risked now.
Your shareholders will be diluted out, and then it is likely that Geopacific will undertake a consolidation.
Just because one shareholder albeit with a large stake,caves in, there is no need for the rest of us to. Geopacific may be entitled to a board member and icrease their holding under "creep"provisions, but that will be good for the Kula SP.
If the POG continues to grind up, Kula's stake in the project should be reflected by a greater relative increase in SP increase as those who remain now are committed to Kula and represent "strong hands".
I want a much better deal for my shares as Kula represents :
premium for control
better leverage to POG
an effective board that I have trusted
KGD Price at posting:
2.7¢ Sentiment: Hold Disclosure: Held
