Market's view on Emmerson
Published on April 2024
- Global Sustainable Minerals Plc has acquired a 26% stake in Emmerson Plc, indicating high confidence in the latter’s prospects, particularly regarding the expected approval of an ESIA permit.
- Concerns were raised regarding the potential for a mandatory takeover offer, as holdings approach the 30% threshold.
- Global Sustainable Minerals is seen as financially robust, capable of providing significant funding (approximately USD 400 million) for project development upon permit approval.
- A notable transaction involved 20% of shares being offloaded, with Global Sustainable Minerals purchasing these shares.
- Speculation exists around possible inside maneuvers by Moroccan insiders influencing stock movements.
- The REX Retail Offer was significantly oversubscribed, leading to scaled-back allocations, with Global Sustainable Minerals subscribing for USD 2.0 million of new shares.
- Questions arose about the degree of share dilution post-capital raising efforts, with estimates suggesting around 11% dilution.
- Frustration was expressed regarding the short notice and lack of access provided by some brokers during the capital raise.
- Administrative expenses for the company were listed, highlighting significant outlays on directors’ fees and professional consultancy, among others.