By: Creamer media

Kula reported on Tuesday that Forrestania had passed the 86% threshold, leaving a narrowing window for minority shareholders to accept the offer ahead of the January 22 closing date.

The Kula board warned that shareholders who did not accept the bid risked holding shares in a company with limited liquidity and ongoing funding requirements. While Kula is expected to remain listed on the ASX if Forrestania does not reach the compulsory acquisition threshold of 90%, directors cautioned that trading in the shares could become thin or cease altogether.

The company also flagged that additional capital would likely be required to continue exploration activities, raising the prospect of material dilution for shareholders who did not participate in future funding rounds.

All Kula directors have accepted the bid and continue to recommend that remaining shareholders do the same as soon as practicable. Acceptance can be completed online through the Automic share registry.