"If they are doing a funding deal that has an equity component, how can they sign that deal if they are in breach of ASX rules re the 15%? hence get the waiver and then sign the deal." - you can sign an announce a deal and simply ensure that the deal is subject to certain conditions being met, e.g. shareholder approvals for a 15% waiver, or any other issue.
Deals are announced with these types of conditions all the time. It would actually be really bizzarre for a company to approach it in the way it has been suggested, which truly reflects a lot of mental gymnastics and fantasies being projected by some shareholders to pretend there is a grand plan hidden from us, and we all need to 'join the dots', or some other bs like that. There is far too much cognitive dissonance being exhibited by people who are in denial or have other agendas.
The fact is, the company remains underfunded. We had a capital raising no less than 5 months ago, and they're already laying the groundwork for another one. They repeatedly talked up potential deals, and I will reminds people again - every single time they've talked up a the prospect of a deal, we've ended up with a capital raising.
Every time its happened, we've had the usual suspects come out to again, explain to us how to apply mental gymnastics and suspend reality to believe there's a big strategy underneath it all and a big deal is just around the corner. Track records and facts don't seem to matter to them it appears, not when it challenges what they want to believe.
So now we end up with more theories of a deal being made that we haven't been told about, and that what's being done is in support of the deal, when the most obvious and simplest explanation is that there probability of no deal materialising is very very real, and the board needs to prepare for that. But of course, go and get behind these more complex fantasies because you want to believe PR has a deal lined up.
I'm not saying there won't be deal, I'm sure its possible some vulture might swoop in when the money is almost dry, shareholders are tapped out, and they can massively dilute existing shareholders for a song. Then those PR fanboys can point to to claim some sort of pyrrhic victory.
PAR Price at posting:
31.5¢ Sentiment: None Disclosure: Held
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