Resolution 3 - Ratify the Issue of Convertible Notes $600k
$500k of these notes were issued to L1 Capital Global Opportunities Fund
L1 Capital Funds manage over $4 BILLION in funds !
Why would they bother with a small investment in a penny stock like Merlin Diamonds ?
I guess that this is their initial investment in MED to be followed by further investments in the company.
The 2nd point is that it is always positive to see the Chairman's family committing an additional $ 2.5 million to increase their stake in the company. As if the family hasn't a large enough stake in the company already.
I think the company needs to clarify if the $2 mill note facility announced 31 August is somehow included in the Edensor note issue or are we talking about TWO issues of a TOTAL of $ 4.5 million.
My bet is that they are somehow connected as there is definitely NO current need for the company to raise in excess of $ 5 mill in funds for their short term cash flow needs.
This short term dip in the share price gives shareholders the chance to increase their holdings.
With a MC of barely $20 million I consider this opportunity to be ONE of the lowest risk/high reward investments that I have seen in many decades.
MED Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
