BRM - New Warrant Issue for Barramundi

[keerti]

New Warrant Issue for Barramundi

https://www.nzx.com/announcements/419655

The record date for the issue is 25 October 2023 and the warrants are expected to be allotted on 26 October 2023.

Each warrant gives shareholders the right, but not the obligation, to subscribe for one additional ordinary share in Barramundi on the exercise date. The exercise date is 25 October 2024.

The exercise price will be $0.69

Any thoughts?

[Basil]

Welcome to the forum keerti.

I hold a substantial number of Barramundi shares and am very pleased to see another warrant issue, this time on quite advantageous pricing terms.
I expect the final exercise price on 25 October 2024 will be about 63 cents so the warrants will be a very good opportunity for those wanting to gain exposure to what will hopefully be, recovering Australian economic conditions in the year ahead.

I got the initial quote price of the Kingfish warrants when they started wrong by quite some margin so I will resist the temptation to have a guess on the initial trading price of these ones.

Hopefully I will get time to attend the annual meeting this Friday in Ellerslie.  Any one else on here going ?

[Stockgathering]

Yes, I plan to attend the meeting. We should get a good overview of BRM portfolio and the companies likely near future progress.

[Ricky Bobby]

Were u buying up warrants today basil?..

[Basil]

I tried to buy 200,000 this morning for one cent.  Was a bit of an opportunistic halfhearted attempt and I didn't get any more.  Already have 150,000 free ones issued to me so unless they're really cheap I'm happy with what I have.  I think they're probably worth a bit more than 3 cents they closed at but the markets are very weak and sentiment is very poor so maybe not.

[Ricky Bobby]

Ha! Yeh I was the same... but in a smaller quantity! Just should of gone at 3 cents to grab some more... it's been a rough week in the markets, sentiment is pretty low...

[Mos]

BRM's purpose is to generate outsized fees for Fisher Funds. Fees as a % of FUM very high - typically average 2% plus. IPO was $1. Where are the clients' yachts?

[Sideshow Bob]

Ha! Yeh I was the same... but in a smaller quantity! Just should of gone at 3 cents to grab some more... it's been a rough week in the markets, sentiment is pretty low...

Gone from $0.03 to some trading at $0.02 today, last at $0.022.

Patience grasshopper......

[Ricky Bobby]

Ha! Picked them up today at 2.2... let the games begin

[Basil]

Ha! Picked them up today at 2.2... let the games begin

Congrats, you're up 50% already as of a few minutes ago.  I picked up quite a few yesterday at 2.9 cents and a few more this morning at just over 3 cents.  Good buying at this level in my opinion and gives a lot of inexpensive optionality late into next year in regard to a hoped-for recovery in the NTA of Barramundi in 2024.

[Ricky Bobby]

I recon I might have got this one right for once!! Should of bought more😅

[Basil]

I got 145K free ones and bought another 105K for a 250K holding.  Another 250K would be nice.

[Ricky Bobby]

Hey Beagle, what did the warrants get up to last time (the successful warrants, time before last)?..

[Basil]

Dog gone it, I've forgotten.

P.S. "Another 250K would be nice".  Actioned that today.

[Ricky Bobby]

It's really interesting... the sell side for normal BRM shares is massive and the exact opposite for the warrants. Should I just cash in the warrants now and buy more normal shares at a discount?. Is this how it normally plays out?..