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As we predicted exactly one week ago here, Minoan (MIN) will not - as some Bulletin Board savants had suggested - have to repay the £5 million loan it got in October 2013 from Hillside International Holdings at close of play today. Minoan clearly did not have the cash.
The loan will be extended to 31 December which will allow Minoan to monetize part of its stake in Cave Sidero which is clearly worth a multiple of the current £20.3 million market cap.
In return for the extension Minoan has altered the strike price of 10 of the 50 million warrants that Hillside was granted in return for providing the loan from 13p to 8p. So there is a tad more dilution but given that Minoan's T&L business must - on any normal sales multiple - be worth at least half of the current market cap and that Cave Sidero now cannot be stopped by Green nimbies and is worth a multiple of the market cap, in the greater scheme of things it is irrelevant.
The shares are up a smidgeon on the news at 9.5p-9.75p but are still very cheap and really should motor fast on any news on the monetization of the Cretan resort site.
We do not expect to have to wait that long for developments on that front and thus the stance at up to 11p is BUY with a target to sell of 16p+
This article first appeared on HotStockRockets - to catch the next red hot share tip from the HotStockRockets team out shortly as well as two SCORCHERS we tipped on FRIDAY 30th June, for just £5 click HERE
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