Vote on 30 Sept meeting

[SuspiciousMind]

I’ve been a Greatland shareholder for about 18 months.

Now the dust has settled and I’ve had time to reflect on the last week, I’ve decided to vote AGAINST the placement at the 30th Sept meeting (unless I get satisfactory answers to the below questions … which I don’t think will happen). I’ve no doubt the vote will be passed but I feel I need to register my displeasure with the way the raising/placement has been done. I don’t believe the CEO has acted in the interest of existing shareholders (aside from those who had access to the placing, including the directors). My questions are:

Why was the placing at a 30% discount to the share price (particularly if the deal to acquire Telfer/Hav is such a good one)? For comparison, De Grey raised a similar amount a few months back at roughly 13% discount. Why weren’t the Greatland CEO and ‘esteemed’ Board members able to convince institutions that a 10-15% discount was still a good investment? Or was it not in their personal/corporate interests to do so?

Why was there no rights/entitlement offer for existing shareholders? For comparison, roughly a 40% of the money raised by De Grey came through an entitlement offer to shareholders. For Greatland, 0% of the money raised came from a rights/entitlement offer. [The Greatland c.$8m offer open to ANYONE resident in UK feels like nothing more than a tokenistic attempt to appease shareholders].

Grumble, grumble ….

[jecsggp]

I will definitely vote for all the actions, with the company's (and my) future in mind. I don't really care about the placing price. This process is progressive and characteristic of SD who I respect. We are not hanging about on this; just three weeks after news we vote on the whole thing and become producers with associated company income; soon after, the opportunity to talk to SD at the Town Hall meeting; six months to ASX listing for which all the prep work has been done.

I have only the long-term, very-personal concern about the possibility of losing the AIM listing for my block of shares (held since they reported that first big gold drill result at Havieron) and having them come out of the protection of my ISAs.

John

[hizer]

John
If the UK listing was cancelled you can still hold ASX listed shares in your ISA.
They will be in Aussie dollars but can be traded through currency conversion or FX charges.
Greatland may take a main market UK listing as AIM has not been good for us.

[jecsggp]

I agree with all you said - especially the float onto the main market as we will have a rreasonable market cap.

John
If the UK listing was cancelled you can still hold ASX listed shares in your ISA.
They will be in Aussie dollars but can be traded through currency conversion or FX charges.
Greatland may take a main market UK listing as AIM has not been good for us.

[Aiming2please]

We need the investment to push forward, how big ggp will come overnight is impressive. My average is around 14p so a long way for me to go however I have to look at the bigger picture. For me it’s a vote through.

[thebigdollop]

Each to their own SuspiciousMind but I'd rather we joined the list of "producers" rather than stay on the list of endless mining explorers. I believe that SD and the board have ultimately delivered a fantastic result with 100% of Havieron and Telfer and more than I bargained for when I first invested back in 2018. Yes it's a shame the retail offer was at 4.8p and there's dilution but honestly in the long run we've got a tier 1 gold mine for the next 20 years along with the second largest processing plant in Australia. And now imagine if we discover an even better tier 1 deposit in the Paterson or Ernest Giles. Well as an explorer it would mean more dilution and probable JV. If we're a producer it means we can do it ourselves and offer greater value for shareholders.

BigD

[jecsggp]

Added note: The reason I have concerns about the ISA holding is because of what this current UK goverment might do in future.

J

John
If the UK listing was cancelled you can still hold ASX listed shares in your ISA.
They will be in Aussie dollars but can be traded through currency conversion or FX charges.
Greatland may take a main market UK listing as AIM has not been good for us.

[Hydrogen]

Hi there Suspicious Minds, - great handle

A fair question: and one which I have myself felt somewhat frustrated by today. A family member of mine applied for stock but their allocation was declined essentially because the broker couldn't see that they were existing holders (via a different broker ...but they didn't have cash readily available in that account), which is all rather frustrating. They have instead bought on market today.

Regarding your point about rights issue: It seems a rights issue wasn't possible in this instance.

Rights issues require publication of a prospectus, which requires at least three years audited financial information on the target assets (Telfer and Haviron). Apparently, Telfer has not been audited on an individual basis within the NCM portfolio (audits were at a consolidated group level) so only unaudited financial reports were available on the Telfer asset, as set out in the admission document.

Further, due to UK FCA rules the maximum retail offer that could be conducted was £8 million which was obviously oversubscribed. This consequently meant subscribers had to be limited by extra eligibility criteria, of being 'an existing shareholder holder' and with a pro rata allocation reductions based on demand. That would appear to show there was overwhelming retail demand for this placing.

Of note, the Money of Mine analyst (who IMO are pretty clued up and dialled in on the sector) suggested in their first deep dive on Greatland several months back - that 'a massive AU$1.5bn IPO' would be required to purchase Havieron. It would appear Shaun required significantly less to close this deal than their quite probably fair and reasonable and estimate of $1,5bn well about 50% less.

I suspect this has left many people who didn't follow or understand the historic situation somewhat dumbfounded or curious. I mean it's an absolute steal right...? Either that and/or NCM shot their own foot and legs off with their dubious negotiating tactics.

Personally, I suggest there's a bit more testament to the power and leverage contained with the ROLR right of last refusal and negotiating skills of Shaun and the BOD...

Holy snapping duck Poop... is it a ripper of a deal. ?!?!

I said Shaun was impressive.. Maybe the naysayers are starting to get it.

[Samplank]

Hydro,
I couldn't agree more with your assessment.
Shaun has been 'round the block before' and cleared every hurdle.
The release of new shares very rarely pleases investors, but, Just compare what we had to what we have now.
Sam.

[droverman]

Voting against is not an option, if the Nos come out on top the BOD will resign on mass as there is no need for them and the SP will be less than 1p and GGP will be taken out like SXX, or like our political system we have in the UK, out of the pan in to the fire. You get what you voted for, no going back. DM

[Redirons]

Great warning DM but I get no sense (even on the LSE Board) that there is any movement (appetite) towards voting against the deal - it would be absolute madness to do so imho!!!
Good luck all true Greatlanders, our time to celebrate is coming!!!