Ann: Icon Energy secures AUD$5.9m funding from Ch, page-5

re: Ann: Icon Energy secures AUD$5.9m funding... imho this announcement says more by what it does not say, than what it does.
1. there is no resolution to the SPA yet
2. the Shenzhen SPA is still in negotiations
3. they are negotiating with "other parties" - is this good or bad? does it mean that ICN thinks the Shenzhen deal will fall over, or does it mean there is competition for our gas?
4. are the negotiations with "other parties" related to the placement?
5. i am officially a sceptic - but i have not closed my eyes - and i think the placement os overall positive for these reasons:
* it raises $5.9m cash which we will be handy, but i think ICN is not yet desperate for the money, given the Stanwell deal.
* the big plus imho is that the Chinese are like the japanese - they need "comfort" when they invest. they invest for longer time frames than us, they place more importance on relationships, and "connections" are hugely important in China, and progress always seems to be glacially slow. This placement i think was made, not for the cash, but for the "relationship and the connections".
the reason I think that is that it was made at 20c and it was relatively small placement. the decision to price the placement shares at 20c would not have been made lightly, because RJ would not want his holding diluted at a cheap price!
* i think the 12 mths escrow of the Chinese shares is not so much an indication of what RJ says, but more of an indication that the Chinese think SOMETHING will come out of the Chinese relationship in the s/t to m/term.
* whilst the Shenzhen MOU may expire at 31 Dec, and the SPA may not get signed by then - I guess there is nothing to stop it being resurrected!? If the delay to get to a SPA is simply the wheels of Chinese politics turning slowly, why couldn't the parties signa SPA in say 3mths time? as they have already done much of the legwork and negotiating?!
6. i still think that the Chinese are desperate to lock away energy supplies for the longer term. these agreements need to be from stable suppliers, at predetermined prices, "greener", long term, and preferably with parties in which the Chinese have an equity interest. Just have a look at some of the other CSG to LNG deals.

i think this placement is a big plus - even if the SPA does not eventuate.

the SP will be dropping because the big seller will be selling into the new buy demand, which will have been created by this announcement - ie that insto will still be putting a "lid" on the SP. But they will eventually run out of shares to sell.

cheers