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12/03/16
15:54
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Originally posted by Last of the Mohicans
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Troyboy,
When I first bought in, I was looking at it as a very short term investment, maybe a few days hold at most.
My thinking was simple, they've just cancelled a A$7M+ funding after they carryout a share consolidation. Now there not going to do the consolidation & are only going to raise the minimum cash the ASX will agree to under a Chapter 1 & 2 relisting (under A$1M) @ 2 cents.
The share price was 1.4 cents @ the time. To me the only way to achieve what they were saying was to bring out more good news or show how the need for A$6M+ of capital had just disappeared to get the placing away @ 2 cents. After all who's going to pay that price if they don't see any additional upside to there investment?
Its not trading like a normal pump & dump that's for sure.
I'm not a fan of the large commission that some people/company's get for doing these deals.
This is no exception, but something PI have no say in & have to live with.
I've not seen anyone else comment on the change that's had to occur because there not raising A$7M+
Before they were getting 32.5M options @ 2 cents for the transaction & 120M options for the cap raising set at a price 25% higher than the placing price (so if placing was at 2 cents, these would be exercisable at 2.5 cents).
Now they are getting 60M shares at no cost & 25M options @ 2 cents (very nice 10%+ fee on existing structure).
I'm mentioning it because the capital raising options would have brought in A$3M of capital to the company when exercised at 2.5 cents. The higher number of original 2 cent options would have brought in more cash also.
So clearly the company see's no need for extra funding in the near term (within 18 months) and indeed wants to keep dilution to the minimum going forward.
Very Significant things have clearly taken place in the last 6 weeks, as yet we're not privy to them, Tuesday announcement was simply to try and guide us in the right direction.
Many as yet, simply haven't understood its implications.
I've bought 3 parcels now & haven't even tried trading them yet!
I'm waiting to see what's said, but at the moment I'm pretty sure I'll be holding onto some of them for the longer term, even although IT is not my thing at all.
LOTM
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I too do have some question why Syntonic even wants/needs to list here on the ASX?
Was it prior to doing the deal with PSF they felt the need to tap into being able to do a CR to fund their expansion into Europe, Latin America & SE Asia?
Now that the binding agreement has been signed between PSF & Syntonic & Syntonic is creating accelerated revenue and unexpected future cashflow that they no longer need to raise $7 million capital for the expansion...do they still need PSF?
With such a great business model, why not list on the NASDAQ and there are plenty of US investors who would be more than willing to invest in such a venture?
Am i thinking too simple here?