Hi THP … I’m hoping the price doesn’t fall to accomodate a 1.3c capital raise partly because of estimating RCF has stuck $42m at an average of 2.9c a share and, while it may participate in future capital raises to maintain its’ position, it doesn’t have e lot of space to buy up big without triggering takeover alarms.
And other large shareholders may be reluctant to see substantial new shares issued so cheaply too.
Plus there’s a double deadline approaching in that CEO Graham Arvidson has promised Wood news in quarter 4 before EOFY, and that’s also the date by which when any who have had an interest in tax loss selling may be wanting to rebuy their shares.
-If there’s pressure from those, plus solid bankable facts for a long LOM etc etc from Wood, plus the EPA approvals on G-abintha in and even some government support I think the share price will be high enough to support a raise that’s higher than 1.3c.
The other factor in this is that the AVL team contains several finance-savvy directors and management well versed in steering towards optimal capital structure and I’m hoping that sorting this out is the main ‘behind the scenes’ game at the moment …
cheers
(20min delay)