short term pain for mid term gain?, page-6

Hi gupper

None of us are happy about dilution and there seems a fair bit of angst surrounding current holders being excluded from the raising. For me this raises some interesting points
If this raising was conducted via an spp what would have been the likely uptake/participation rate ??
I would wager that it would have been very low. I personally probably would not have participated. I think that there isnt much doubt that shareholders will get the opportunity to top up at somewhere near the raising price on market in coming days and weeks.
Many comments here about placement being made to mates at the exclusion of current s/h. Will be interesting to see who this stock was placed with and whether or not Wyllie participated, i will reserve judgement until this is clear. One of the biggest problems for AMU and its sp imo has been the composition of the register, too many stale bulls and not enough insto holders. Everytime the sp takes a run it gets smothered with sellers. It is my hope that this placement has gone to largely institutional holders who having conducted DD can see a brighter future for AMU.
Discounted raisings are a sign of the times and the discount here is largely in line with other recent raisings.
I think where the sp goes from here will in part depend on to whom the stock has been placed. Will almost certainly be 'protest selling' from stale and aggrieved shareholders and this imo could be a blessing in disguise as fresh holders take the reigns. The register will look very different in coming months.

I have no doubt that the board would have deliberated and consulted extensively before committing to this action, in the knowledge that it would be widely unpopular. Yet they obviously found support from elements of the register. Would like to see a more detailed rationale from the company in regards to this raising.

I think you are correct in saying that the company sees debt as its major obstacle to growth and sp appreciation. The debt is bleeding cashflow which ofcourse hampers the companies ability to maintain exploration commitments.

If the company can reduce some debt (relieving pressure on free cashflow), increase development and exploration drilling and take greater control of operatorship (further relieving pressure on cashflow) whilst introducing solid supporters to the register then imo the company will be in better shape going forward.
Too early to call atm but looking at the open there seems to be some support around and above the 26c mark, will have to see how the sellers behave. AMU clearly made a compelling arguement to those that took place in the raising lets hope they are now willing to support the company and its sp going forward