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clock Created with Sketch. 04/04/17
22:02
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Originally posted by Downanout
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The old directors might be gone but they have left a poison pill behind for CGA. I wonder if CGA knew that was in the agreement between CTN and OCFM. The only drawback is it is our money that they are brawling over.. One good thing about that clause, if it stands, is that it probably rules out CTN doing any dilutive capital raising for the sake of increasing CGA's funds under management, Also, if over the next three years OCFM's stock picks perform better than CGA's it is going to put the spotlight on the "independent" directors. How could they justify taking money away from OCFM? Despite worries about these shenanigans not doing anything for the share price, I think what Mr Market really takes notice of is how the investment manager's stock picks are performing. Provided nobody can actually run off with the funds, that's all that really counts. "The OCFM agreement differs in a material respect to the terms of the agreement with CFML in theFor 3 years from the date of the agreement, all proceeds raised from any capital raising must be allocated to OCFM and no funds may be withdrawn from the OCFM portfolio. OCFM is entitled to a lower management fee of 0.8% pa when compared to the management Up to 10% of the Company’s funds under OCFM’s management may be invested in Cheers These are my opinions only. Nothing that I have written here should be construed as disparagement of any of the parties or entities involved. For all I know, all of the parties and entities may be completely convinced of the correctness of their actions and be acting from the highest possible motives with all due skill and care in accord with their various responsibilities and obligations. Any figures and facts are mentioned in good faith but I accept no responsibility for their accuracy.
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Yoda say smart move for reasons two. One. Buy capacity. Good fundies hit capacity fast. This way OC are bounded to reserve capacity for CTN. And at lower fee than CGA. If OC perform they get performance fee, that's ok. Two. Previous directors recognize that size is handicap to performance. This is their legacy. Three Your reason Downanout . No value destroying caputal raisings.
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