RE:RE:Tx, does KL's Sept 5 deadline imply likelihood of $6 CAD?As I understand it the wts attached to the 14Ms simply say KL has an option to exercise the wts to convert them to shares for a payment of $6 each, during the period of 18 months (expiry date Sept 2020), subject to any mutually agreed changes in according with the rules and regulations.
Ideally, we would expect the wts to be exercised when they are "in the money", i.e. in this case when the SP is over $6/s (that would be good for all of us, but more is better, lol). That means KL would have some incentive to make some money (over $6) by converting the wts into shares, bu forking over 14M x 6 = $84M (quite a bit of spare cash for NVO treasury).
However, there could be some incentive for KL to exercise the wts when the SP is below $6/s (no-one would block them) if the incentive is to gain more control of NVO.
From SEDI (just looked at cea.ca/nov site and Nov website (Corp Presentation, Slide3) briefly and KL has some 16.7% (with 14M wts not yet exercised), Creasy Group has 6.7%, and ES holding of around 6.3% to a max of 9.9% was lumped in with management and other directors of 14.96%). Another 14Ms would give KL another 7% for a total of 23.7% NVO. This plus 14.93% from Management and Dir would give a control of 38.6% of NVO. Newmont/Goldcorp has some 3.3% and Institutions have 6.86%. So, there is simply not enough opposition if KL wanted to plow through.
Note: without the addtional 7% from the 14Mwts, KL would not have more than 1/3, hence Tony may want to exercise the wts regardless of the SP, just for the control. Presumably, the SP would follow and pass the $6 mark (the market would just follow like sheeps, lol).
KL may just want one hand on NVO steering wheel for some directional control, but would leave the rest to Quinton to run the NVO truck.
Just my take folks. KL is a good company. It's getting bigger after the little Detour detour. Then it will be time to go after WM and perhaps BAR in rapid succession.
GH11
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TXRogers wrote:
Hi GN2014
As we all know, the warrants are part of PP deal between NVO and KL. Their exercise in Sept 2020 under the current agreement and share structure imply a take over bid may be pending.
But existing structures and agreements can be modified under mutual consensus, all in compliance with TSX regulations. Which is a recurring theme in many of my posts.
Instead of wracking of heads speculating of what will happen by Sept 2020, I perfer to think in the "here and now". And that tells us al this:
There are only Common shares issued by NVO and held by Shareholders: A couple of the major shareholders are established Major miners. A couple are big time individual investors. All shareholders want NVO to produce gold, establish revenue, maximize equity values, and continue capitalizing on core competencies. Especially exploration and resource expansion.
Every share is the same value. Some of us have more than others. But in the end, we all bought them to increase in value - no different than other investments. Long past any Sept 2020 deadline.
Do we want NVO share prices to rise above $6 and put those 14mil outstanding KL warrants "in the money" by this September?
Answer: ABSOLUTELY. The sooner the better.
All these conditions were known and considered back in Sept 2017 when the partnerships were made. And remain as such as of today.
That's my take on matters, and I'm OK with it.
Tx