Market cap has now dropped to $43M on the ASX / $61M on the NZX
How do they even execute an equity raise at this point. Let's say they raise $60M at 28c (generously assuming that is where the SP is by the time they announce it)
Current market cap is $61M (~218.5M shares x 0.28 per share).
They would need to issue 300M new shares which are added to the 220M that currently exist.
New SP would be ~12c per share.
But the issue worsens as the current selling deteriorates further. The further the price drops, the more shares they would need to issue in order to raise a meaningful amount of capital, and the worse the resulting dilution gets. It's a death spiral at this point for anyone other than the two major holders, A2M and Bright.
Ann: Market update deleveraging plan, bank covenants, guidance, page-86
-
- There are more pages in this discussion • 24 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add SM1 (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
37.0¢ |
Change
0.020(5.71%) |
Mkt cap ! $223.1M | |||
| Open | High | Low | Value | Volume |
| 35.0¢ | 37.0¢ | 35.0¢ | $3.581K | 9.906K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 5383 | 34.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 37.0¢ | 11193 | 1 |
View Market Depth
| Last trade - 16.10pm 04/10/2024 (20 minute delay) ? |
| SM1 (ASX) Chart |