The below us an interesting scenario and one that u touched on a few weeks ago when talking about a capital raise.
Dazed wrote: "If Linc gets the green light for commercial scale UCG/GTL then the 20,000BPD would set the Co. up revenue wise and there would be no turning back. "
My questions for other posters: 1) IF Lnc get approval for commercial ucg tomorrow how would they proceed to commercialisation? 2) What would be the immediate share price impact from this announcement? By immediate I mean in the days following.
My thoughts to above questions: 1) cap raise to institional investors at a slight premium to current share price and go it alone. 2) 50% increase in current share price (I.e a roughly 500mil increase in market cap). I think this would completely retrace when the new investors that buy realise Lnc doesn't have the money to develop it yet (A-LA shale oil in the last few weeks)
What are others thoughts on the two questions posed above?
LNC Price at posting:
$2.31 Sentiment: LT Buy Disclosure: Held
