LinQ are getting sub-underwriting fees to convert their $6M debt into shares. So they get a good fee to convert debt to equity and offset losses. The shares are far more liquid than the debt so expect a big pump and dump as LinQ look to exit in coming months.
The problem will be that LinQ will continue to be a major seller of those shares from now until eternity to recover the capital they have put into the company. Not sure if LinQ will step up to the plate again and fill any gap.
However don't see ZRL going down but any return to long term must now seem a life time away.
Good luck to long term holders here, you're braver than me.
ZRL Price at posting:
10.0¢ Sentiment: None Disclosure: Not Held
