Carabella Res Ltd Nsw CBLLF

RE:Pala buying shares?

[Method]

A couple of issues. First, the vote not only requires two thirds of those who vote but also majority of the minority. The second requirement would not be helped by buying more shares in the open market. Also, the date of record did not change with the change in meeting so anyone who acquires shares since the record date wouldn't be able to vote anyway.

Presumably, they knew they didn't have the votes and are trying to rally more support during the delay. It's also possible another bidder showed up and the BOD wanted more time to decide if there was a superior offer. Pala could also be considering bumping to get the deal over the finish line.

TwoAceFoldEm wrote:
Put yourself in Pala's shoes. What would you do if you were unable to get the votes and there is a postponement? Try and buy enough shares to increase the votes in favor of the deal! Compare the current shareprice to the offer. There is no extra cost in it for them to buy the shares now in the market compared to the offer. Volume is up and the shareprice as well. I would not be surprised to see a short squeeze next week. Also the management might be doing the same to get the 15 million if the deal succeeds. At the current market cap that is around 5%. I would take out a huge loan with the shares and offer as collateral and repay as soon as the deal succeeds. Cash is 85% off the current share price so that 15 million for the 15% makes 100 million to be bought for that to still work. That is almost 1/3 of the shares oustanding. Free float is much less. Pala and so others should be already around 50%. So dont be surprised if we see a short squeeze very soon to get those last votes and unlock the huge value for Pala and the big Payday for management. If they are smart they use a third party. Curious to see what you think.