SML - Synlait Milk Ltd

[sb9]

Good spotting. Interesting that NZX hasn't even included that detail.

ASX Announcement here:

https://cdn-api.markitdigital.com/ap...df02a206a39ff4

ASX rules are pretty comprehensive compared to that of NZX.

[jimdog31]

ASX Trading Halt request timed at 4:05 pm states that the reason is "an announcement relating to a proposed capital raising".

Love the PR aye, 2 x positive announcements paving the way for CR.

[winner69]

Love the PR aye, 2 x positive announcements paving the way for CR.

Suckers will love it ....and the higher price last couple of days helps

[Gregnz]

ASX rules are pretty comprehensive compared to that of NZX.

Although based on this years NZX performance, it wouldn't surprise me if they just forgot to include the detail.

[jimdog31]

Suckers will love it ....and the higher price last couple of days helps

WOnder how much they need? will A2 let their shareholding dilute?

[Scrunch]

ASX Trading Halt request timed at 4:05 pm states that the reason is "an announcement relating to a proposed capital raising".

And further in the Bell Gully letter below:
"SML Expects that it will be in a position to make an announcement in relation to the capital raising by 1.00p.m. (NZT), on Wednesday, 11 November 2020. The trading halt is required in order to permit an orderly and transparent market while the capital raising is undertaken."

If it was a simple pro-rata rights issue, full details should have been able to be released now. This therefore tends to indicate there's an institutional book build that has been, or is about to be undertaken.

Slightly odd that the different exchanges have a different planned reopening (NZX till market open, ASX is till 1pm on Wednesday).

[sb9]

WOnder how much they need? will A2 let their shareholding dilute?

At least in 3 digits in millions, do it once and do it big.

[whatsup]

Now that the bad news is out of the way what do you expect from the company that just avoided a massive scare ?

[Gregnz]

Now that the bad news is out of the way what do you expect from the company that just avoided a massive scare ?

Up up up and up some more. They haven't committed $70 million to expanding production for this new supply agreement with an unknown customer without a significant return on investment. I'm curious to know who this 'global category leader' is?

[Beagle]

Suckers will love it ....and the higher price last couple of days helps

The way management and directors have run this company and the risks they have exposed shareholders too and the way they have "executed" their fiduciary obligations to shareholders. makes me wonder why anyone would bother ? The latest lack of disclosure regarding the settlement amount at Pokeno and lack of reason disclosed for the trading halt to the NZX just two further chapters in a long litany of fiasco's and minimalist disclosure to shareholders. A good look at the balance sheet the other day lead me to the conclusion a near term large capital raise was inevitable.

I don't invest with companies being run and governed by Muppets at any price.