A nice switch in my opinion and suggest in time it will prove to have been a very savvy move indeed.
In regard to shares outstanding, Craton Capital (natural resources fund out of SA) took an $8m placement this time last year at 4.5cps and APAC 20% at 5cps in Dec. These are quality funds in the resources sector and have no issue with ABM capital structure it seems. TAM executed a consolidation 2-3 years ago that was designed to "attract institutions" and they have not added ONE!!! Assets and performance drive investment, not capital structures (When assets are real and balance sheets are strong, like at ABM it doesn't matter - Most juniors with a focus on tight capital structures are merely designed to create Ponzi type trading). Your unlikely to ever see a consolidation here, let alone a cheap placement in the next 18 months - two years.
That said, TAM with $30m debt will need an imminent cash injection in my opinion, so your switch makes absolute sense.
Goodluck loyal.
Pete
ABU Price at posting:
4.4¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)