Carabella Res Ltd Nsw CBLLF

NEW OFFER IN ................

[MCFer]

 

Cobalt 27, Pala increase cash consideration by $30M

 

2019-10-01 13:23 ET - News Release

 

Mr. Philip Williams reports

PALA INVESTMENTS AND COBALT 27 ANNOUNCE SIGNIFICANT IMPROVEMENTS TO ARRANGEMENT TRANSACTION AND NEW SHAREHOLDERS MEETING DATE OF OCTOBER 11, 2019

Cobalt 27 Capital Corp. and Pala Investments Ltd. have today entered into an amendment to their previously announced arrangement agreement which provides for the acquisition by Pala of 100 per cent of Cobalt 27's issued and outstanding common shares, other than the approximately 19 per cent that Pala already owns.

The New Arrangement Agreement

Following extensive consultations with shareholders of the Company, Pala and Cobalt 27 have agreed to the following significant improvements in the New Arrangement Agreement:

• Increased cash consideration to $4.00 per share from $3.57 per share, representing an additional $30 million of cash consideration to Cobalt 27 shareholders;
• A reduction in the cash change of control payments for management under their existing entitlements by US$7.13 million, representing a decrease of 46%; the balance of the entitlements will instead be satisfied in 4,817,345 shares of Nickel 28 Capital Corp. ("Nickel 28") calculated based on the implied value per share of Nickel 28 of C$1.92 per share as described below;
• A 50% reduction in the termination fee payable to Pala in the event of a "Superior Proposal", from C$15.5 million to C$7.75 million; and
• Pala's interest in Nickel 28 to increase from 4.9% to 9.9%, demonstrating confidence in the ongoing prospects of Nickel 28.

https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aKBLT-2815679&symbol=KBLT&region=C

[17Digger]

This revised offer does not sound like much improvement to me.  The value of KBLT's cobalt sitting in inventory alone went up by %50 when cobalt rose in price per pound while the last offer was on the table.  This value likely will continue to rise. No reason to vote yes to this new offer. It is much more valuable in our own hands. xxxx

[lumpy13]

This is what I wrote on Sept. 19: And, maybe, but I doubt it as I don't trust mgmt and Pala, they are actually thinking about making a better offer.  But, again, knowing how they operate, it would be the minimum additional premium they' thiink they'd need to get positive shareholder response.  And, thinking about it, it'd probably be increasing the cash portion to C$4

[JAUBE123]

Is this a quick way to make an easy %50 lol I don’t understand? I understand a year from now this should be double or more. 

[SilverKnight]

Good call lumpy. Now Anson is saying they will vote for the transaction. https://www.globenewswire.com/news-release/2019/10/02/1924252/0/en/Anson-Funds-Supports-the-Improvements-to-the-Cobalt-27-Pala-Transaction.html I won't be changing my vote. This deal still hugely undervalues the company, especially given the recent rise in cobalt prices. I can't understand Anson's change of tune

[ScotiaOne]

Call me cynical but I wonder what side deal consideration Anson is getting (related to this deal or not). Agreed... it is such a minor enhancement so why bother. I'm not changing.