HGO (ASX) EHL restructure approved

Originally posted by VYR ↑

Hi Names little

The disclosures at the time of the rights issue said they would either have to sell bonds and options that took them over the threshold or get Shareholder approval to convert if they wanted to rise above the threshold..

They picked up $1m worth of bonds and options above their entitlements through the underwriting which if converted would I think take them to about 33% on a fully diluted basis.

Their third option at the September conversion date is of course to make a takeover bid. The price that the bid would have to be at to satisfy the law is something I don't know. In a normal situation where they bought shares above the threshold the takeover would have to be at that price. I'm guessing they would only need to make a bid at 3c, if they got all the rights they have for free. They could certainly make the bid at a higher price which they might do while they are bearing the cost of a bid in the hope they pick up a few more.

They may not be inclined to buy more bonds and rights because that would muddy the waters in relation to the shareholder approval exemption that is associated with an underwriting agreement. That might be why the majority of trading has been in the ordinaries even when the options and bonds have offered a cheaper entry price.

The next six months will be interesting.

Hgo has a lot going for it on a few fronts.

Buy and grow rich.

Expand

Hi VYR, thanks for that.

On any takeover price they would have to comply with minimum bid provisions

http://download.asic.gov.au/media/4107420/rg9-published-7-december-2016.pdf

"
RG 9.147

The ‘minimum bid price rule’ in s621(3) provides that a bidder making a takeover bid must offer consideration at least equal to the maximum consideration that the bidder or an associate provided, or agreed to provide, for a bid class security under any purchase or agreement during the four months before the date of the bid (pre-bid purchase). "

Not sure what happens if they don't buy any in the 4 months proceeding any offer but assume any offer documents would be rejected by asic if it wasn't considered a genuine bid.

Thanks

No.	Vol.	Price($)
4	260464	5.5¢

No.

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Price($)

260464

5.5¢

Price($)	Vol.	No.
5.6¢	1299265	2

Price($)

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5.6¢

1299265

No.	Vol.	Price($)
1	49767	0.080
2	230000	0.079
2	136415	0.078
1	97825	0.077
2	600000	0.075

No.

Vol.

Price($)

49767

0.080

230000

0.079

136415

0.078

97825

0.077

600000

0.075

Price($)	Vol.	No.
0.083	137770	2
0.084	288879	3
0.085	2009000	2
0.089	229500	1
0.090	76002	3

Price($)

Vol.

No.

0.083

137770

0.084

288879

0.085

2009000

0.089

229500

0.090

76002

(20min delay)
Last 5.5¢		Change -0.001(1.79%)		Mkt cap ! $108.9M

Open	High	Low	Value	Volume
5.5¢	5.6¢	5.5¢	$58.83K	1.068M

EHL restructure approved, page-6

Buyers (Bids)

Sellers (Offers)