As we creep closer to the time when the announcement will be made I'm coming to the opinion that it will be a case of a capital raising through an agency such as Pattersons.
The time is too short now for the share price to lift with any certainty on news of an extra capital injection and therefore bring the RAUO home.
So I think this "material capital raising" has to be substantial enough to compensate for the RAUOs that will probably not be converted now.
As I have said earlier the number shown outstanding in the last presentation document amounted to $6.9 million.
Therefore is this announcement going to have a capital raising of about that level of funding or is it going to be higher than that. Could it be up to $10 million ?
While there will be wails about dilution it should be remembered that if RAUOs had been converted then that would have added a further 230+ million shares. Certainly they would have delivered 3 cents per share.
If this "material capital raising" has been done at a discount to present market price then that will certainly put pressure on the share price.
Still, what is the alternative ? Do nothing and grind to a halt?
Or do the capital raising and move on and then into production next year ?
TINA = There is no alternative. You have to raise the money and move on.
We will see shortly.
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