Post by
happyhunting on Feb 19, 2020 12:21pm
takeover
Probably the best result that could have been hoped for - leave's some upside potential. However, be under no illusions, this is a takeover at $0.065/share - those dreams of a takeover at $0.25-0$0.40/share have gone. It will be a long hard road to get back to even $0.15/share. If the placing is fully subscribed and the debt converts, that will be 153m new shares issued - for a total issued share capital of 228m. Current shareholders will be left with 33% of the business. The majoity of the expensive debt will still be in place. With this size of ISC to get to a $0.20 value, will require a market cap of $46m, plus outstanding debt of c.$17m. Anyone who purchased above $0.10 to $0.15 is going to take a long time to see this investment turn positive.