TSXV:AAA.P - Post by User
Post by
Ethanbrodieon Feb 13, 2014 3:48pm
315 Views
Post# 22206761
So so for shareholders, great for ICL
So so for shareholders, great for ICLWhat a steal of a deal for ICL. I think they played the "technical support" and "Major potash producer" card very well in negotiations.. What I don't understand is the following and I understand why the shareprice is acting the way it is. I did sell 35% of my position right at the open this morning for .51 and .50. I did buy back about 10% so far at .455 and will look to add if it goes lower. Anyway to get back to point, the reality is that Farhad never adressed the elephant in the room which equals uncertainty. How much of a discount?? that is huge to know and when you avoid the question, it tells people it is a steep discount. So, esentially, They sold at least half of the company for 80 some million, which I think is a bad deal for whoever got in at 1.00 and higher very bad. a so so deal for people who got in at .60 to 1.00 and a decent deal LONG term for recent shareholders or ones that got in lower. To me, it seems like it is mostly retail investors who are selling. I do see this one recovering and doing well IF and IF questions are answered. I mean how much of the company is left to shareholders? I think ICL played the card well and don't think they will really help them too materially where Allana could have head hunted for proven talented individuals to work for allana. I don't know why we got this kind of deal when there was "soo much interest in Allana" so, it would seem that they could have gotten a better deal. I would have much more respect for farhad and team to play a harder ball. 2014 looks as though potash will recover modestly and 2015 we could see 400+ potash prices which would bode very well for allana. It would have given africa and ethiopia more time to do what they say they will do. Maybe rail would be more in the picture. I think if they would have held on longer and told the market that they are not going to just settle, and raise 10 mil, in a year, the price would be higher. I actually think ICL would have came back with a better deal. They really wanted us, but I think they were the better negotiators. I think it would have been a great deal except of the discount that they recieve on "80%" which is actually a bad thing for allana. sure it gets sold but at a big cost. ICL essentially has a royalty on our company. Africa is ramping up their potash demand, and I don't see why ICL would be all that beneficial to sell the product. I am very confused aobut this deal and after the conference call, it did not really reassure me of much. It does seem that Farhad and company are looking out for their jobs, the ethiopian gov and the big boys like ICL. Shareholders who took all of the risk get the back seat and last at the supper table. I guess we will see what the institutional investors think if we get upgraded or not. I think they will see this as neutral. dissapointed as before I thought they were going to be in for about 150 mil at .50 and no discount to offtake, or a discount for the first 5 years or something like that.. That would have been a great deal for both.