If nobody agrees to provide funding, then there's the chance of administration. It makes holding the shares a lot more risky. Say 25% chance of going to 0.
But with funding, it means the chance of going to 0 is much lower, at least for the next year.
So it makes sense for the SP to be low, when funding is uncertain.
And it makes sense for the SP to be higher once funding is announced or locked in.
Once funding is locked in, administration is removed as a possibility at least for a while. Just leaving the company to get on with the business of restarting and negotiating.
So it makes sense for the market cap to rise a lot, just on the news of $20m of debt.
Ann: Funding underway for the restart of the Chatree Gold Mine, page-72
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Last
$1.38 |
Change
-0.080(5.48%) |
Mkt cap ! $355.6M | |||
| Open | High | Low | Value | Volume |
| $1.46 | $1.46 | $1.38 | $790.9K | 564.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 24999 | $1.38 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.40 | 2446 | 1 |
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| KCN (ASX) Chart |