cap raising, page-38

ocracoke

I was not gloating.

Just saying how I see it.

I am surprised at how hard the going has been for IGR given their far higher grade than what RRL has. So I attribute the problems to management, like you also pointed out.

If they offered a SPP then people would sell down their existing holding to the SPP price and the share price would then quickly go below that level. Then there would be no takers of the SPP and people could buy on market below the SPP with the net result that IGR would not get the funds it needs. In addition some fundies may short the stock a lot, similar to what happened to NMG recently when it raised funds.

In any case there is a high likelihood that the share price will fall the level of the placement, and you and others will be able to average down a lot more.

In my view the only purpose of averaging down is to be able to sell later on to recover losses, ie trade you way out of losses. The problem with IGR is that the pattern has now been set with this management and there is no certainty that they will not come back to the market in 4-6 months time to raise more funds. After all, how long does $25m last them?

Sorry for your losses (it is happening to everyone foolish enough to invest in this market) and good luck.

loki