GREY:ALXDF - Post by User
Comment by
goldhunter11on Dec 09, 2016 5:22pm
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Post# 25578711
RE:Sprott
RE:SprottSprott is acting as an exclusive agent for this PP which has the FT for 0.06 and regular share issue for 0.055. The allocation for the FT is not known. Hope that that would be the major chunk since AZX would get more money. Sprott is in this for earning some handsome commission, and presumably AZX can conserve the cash by paying Sprott with shares? So, in theory, Sprott can hold on to a chunk of AZX for investment purposes, or just turn around and sell them to others.
Since Sprott is not on the list of key investors on slide 15 of the Corp Presentation, it's investment on AZX is not known. Unless, Eric Sprott want to own a big chunk of AZX for an opportunity to play Kingmaker like in the case of KLG (a disaster for KLG shareholders, according to some).
Something to watch for after this PP has been closed
- AEM: to add more to retain 9%. IMG and Teck would be expected to let their holding drop below 2%.
- Will PRB take a fair chunk? 100Ms would represent roughly 22% of the new OS (~450Ms). If PRB takes 10% the cost of 45M = ~$2.5M (which is manageable, since PRB has over $30M cash). Or, it can issue some 1.8M PRB shares, either in this PP or in a separate arrangement with AZX (a drop in the bucket for an OS of 85M). If PRB shows some initial interest in AZX then I would not mind collect some more AZX shares with a bet that a full blown TO from PRB would follow. Just my speculation folks. Do your own DD and put down your own bet.
GH