TAS undervalued - EDE and CNJ Interests, page-21

First 21 Last

Share
Profile

Follow
whytee

5,928 Posts.

311

04/07/17

14:14

Post #: 25656588
Share

Originally posted by 6186mark ↑

Hi whytee,

Well, sometimes these threads develop a life of their own, and get far removed from reality. It's the logical outcome of various "if" statements:
(1) the latest investor presentation says EDE may need to raise USD37m sometime in 2017/18 in a mixture of ways, including equity. As none of us know how much equity compared to debt and others, the worst case is USD37m equity, or AUD50m equity.
(2) IF EDE decided to raise equity it could be via a placement to one or more sophisticated investors, or it could be via a Rights Issue.
(3) If it were a rights issue, TAS would be up for 40% of the total, or $20m. If they didn't subscribe to the rights issue then EDE would not raise the funds they are seeking.
(4) How would TAS / Noble Energy raise $20m? By selling about 100m EDE shares.

Not at all saying this is going to happen, it's just how the thread got to this point

However it happens, if there is an equity raise by EDE, I still maintain that there will be a small dilution in the "value" of TAS's EDE shareholding . Doesn't necessarily mean that there will be a fall in the value of TAS shares, because as noted in the OP, TAS is currently undervalued.

Expand

Personally I think the equity raising would be exclusively in the US and existing shareholders including TAS would not be included. I also don't think they need to get all the funds to complete Ga1 right now, just sufficient to tide them over the unexpected delays in approvals and orders. Everyone would be diluted, including GS, DS, TAS, Noble etc, but on the plus side the balance sheet would be strengthened and the company could keep its options open for expansion.

TAS Price at posting: 21.0¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

There are more pages in this discussion • 4 more messages in this thread...

First 21 Last

Add TAS (ASX) to my watchlist

(20min delay)
Last 0.5¢		Change 0.001(25.0%)		Mkt cap ! $4.026M

Open	High	Low	Value	Volume
0.4¢	0.5¢	0.4¢	$1.051K	262.4K

Buyers (Bids)

No.	Vol.	Price($)
1	221958	0.4¢

Sellers (Offers)

Price($)	Vol.	No.
0.5¢	4785706	4

View Market Depth

No.	Vol.	Price($)
1	71571	0.040
1	16035	0.039
3	215789	0.038
1	200000	0.037
2	80000	0.036

Price($)	Vol.	No.
0.044	50000	1
0.045	127874	1
0.048	125145	2
0.052	27200	1
0.055	10000	1

Last trade - 15.55pm 15/11/2024 (20 minute delay)

TAS (ASX) Chart