rights offer at 2.5c stock now 3.9c, page-26

Hi Frosty,
In my humble opinion ( as they say) I think the "rush" or haste is this very tight situation with Jumonville #1.

They want to get the issue closed off before there is any chance of the well reaching target depth (14,200 ft) and coming up dry.

So the close off date of 16 June means about 6 days left before TD is reached according to latest report. (They reported very good progress and are 4 days ahead of schedule - to take 56 days now from spud date instead of initial estimate of 60 days)

I think they will be hoping that the drilling team slows down a bit. They will not want them reaching TD before the 16th.

If the well was completed before the closing date for the issue and it came up dry then there would be a reluctance to take up the rights.

Under the present dates and timings they should be pretty right. By the time people receive their Offer Documents (sending out May 30)they will have little time to wait around if they want to get them back before Monday 16th June. It will be very tight to get them back in time for quite a number of shareholders IMHO.

I'm not sure whether they are confident about raising the full amount. They are hopeful and they have tried to make it happen.
If we consider it they have (Very much IMHO here) :
(1) Made it a 1 : 1 issue
(2) Made it attractive at 2.5 cents so not too expensive
(3) Made it quite a bit lower than the 'prevailing" share price so it seems attractive.
(4) Made it so that you average down the cost of your shares dramatically. Of course the other side of the coin is that it does reduce the share price with it.
(5) Made it so that you feel to stay in the picture you need to take up your Rights otherwise your shareholding becomes very diluted.

They have also indicated that directors are going to partially underwrite the issue so shareholders cannot grizzle that the directors are not behind it.
AND
They have re-included the idea of the shortfall pool. What Rights are not taken up by some shareholders will then be offered to those who apply for extra at 2.5 cent above their offer entitlement and then to others they can find I guess.

So the future success of the wells to be drilled does depend on the success of this issue.