It does not sound like a strategic investor. The news release clearly says institutional investors, plural. So why now when they said they don't need capital? The OTCBB listing has been a failure. The process of transferring shares from one market to the other does not facilitate arbitrage since the trading hours do not overlap at all, unlike Canada or Europe. Who wants to hold a thinly traded, volatile stock overnight just to facilitate someone else's trade? I think they are trying to create liquidity for the US listing for retail with this raise. Serious US players already have access to the Aussie exchange; it's not about them. To create a bank of shares that can be flipped, institutional investors (read flippers) will be given a sweetheart deal, probably around 10-11c, with the understanding that they will flip it onto US retail. Hopefully, the rumors about the Gilder letter are true and there is a huge promotional push. But first comes the news of a placement at a deep discount.
MTM Price at posting:
14.5¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)