Tongaat analyst and whistleblower Dave Woollam has once again questioned the need for company’s highly dilutive capital raise. The main issue surrounds the underwriter, Magister, whose investments and past business dealings are largely unknown. Magister – which is tied to Zimbabweans, the Rudland family – will underwrite R2bn of the R4bn rights issue, meaning that in all likelihood they will take control of the business post rights issue. Existing shareholders will be expected to cough up to six or seven times the existing value of their shares to keep their pro rata shareholding in the company. If not, they face being diluted by more than 90%. A sad state of affairs for long-suffering shareholders. – Justin Rowe-Roberts
Dave Woollam on the reasons for opposing the EGM going ahead:
I certainly recognise that in our previous interviews we spoke about the deep trouble the company is in. There is no denying that but we feel there have been many opportunities to redress some of these issues, including recovering damages from those who failed in their duty, their duty of care or their professional responsibility. Also getting a better deal from the banks so they could have some time to fix the company as well as several other options that were offered and explored. They have kind of taken this very dramatic step of a big capital raise, raising five or six times the existing market cap of the company and bringing in an unknown outsider, a Zimbabwean company, which we know very...
IDAHO — A woman previously ordered to pay $10 million in damages for making false claims about a professor’s role in the 2022 killings of four students at the University of Idaho has filed an appe...