On 13 February 2019, Maca Limited (ASX: MLD), a company from the metals and mining sector who are integrated services contractor and operates in Australia and South America, announced the approval for the scheme of arrangement of Beadell’s Great Panther Mining acquisition, from the shareholders of Beadell Resources Limited and Great Panther Mining Limited. At present, the merger is subject to customary approvals and the company expects that it will be completed in early March 2019.
On 20 November 2018, Great Panther Silver Limited and MACA Limited (ASX: MLD) entered into an agreement to acquire Beadell Resources Limited. The agreement covered the modifications to MACA’s outstanding loan that was due from Beadell Resources.
Under the scheme of arrangement, Great Panther announced that it will acquire all the issued shares of Beadell as on 24 September 2018. As per Maca’s agreement with Beadell which was announced on 22 June 2018, the outstanding amount becomes due and payable on a change of control of Beadell absent MACA’s consent.
However, it agreed to waive the change of waive control under the agreement which had certain amendments on the implementation of the scheme on the completion date.
- There will be advancement of A$3 million principal amount payment to 30 days after the completion date.
- There will be start of monthly principal payment of A$1.5 million from 30 April 2019 till 31 July 2019.
- It was also highlighted that Great Panther will guarantee to pay A$3 million as well as the subsequent two payments worth A$1.5 million.
- Also, Maca will have the right to convert the remaining outstanding loan of A$15 million to shares of Great Panther subjected to certain terms and conditions. MLD can convert A$5 million to shares of Great Panther each calendar quarter following the Completion Date.
- There will be amendment of the provision to provide 30% of the net proceeds from any debt or equity Maca, reducing the 30% figure to 10%.
- Maca will receive 10% of the funds of any Great Panther debt or equity issuances against the outstanding balance of the receivable.
- Maca will receive 20% of the funds in case of the exercise of existing warrants.
For the FY2018, which ended on 30 June 2018, MLD made a profit of $21.667 million. There was an increase in the net asset base as a result of increase in the total assets of the company. There was also an increase in the retained profit. The total shareholders’ equity was worth $320.835 million. By the end of the year, there was a decrease in the cash and cash equivalent to $108.239 million due to increased cash outflow through investing activities, decreased cash inflow through operating activities.
In last six months, the MLD stock has generated a negative return of 25.49%. However, the stock has a positive YTD return of 4.40%. By the end of the trading session on 13 February 2019, the closing price of the stock was A$0.980 which was up by 3.158% as compared to the previous trading day’s closing price. The stock has the market capitalization of A$254.61 million and approximately 268.01 million outstanding shares with a PE ratio 10.49x.
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