oilleak, 85mill shares is 60% more than 140mill that are quoted atm. Cash will be used but the shares remain.
share_guru, funds raised are not for USA or India, India will be funded through the MOU with Essar and USA is yet to be finalised, read below:
"The funds raised under the Placement and Rights Issue will principally be used for exploration and drilling in the Company?s coal tenements located in the Surat and Bowen Basins, to develop the Underground Goal Gasification business and provide ongoing working capital."
You've missed my point. Do they really need $6mill now? If the Coal India deal goes through, the SP will be much higher and they could've waited till then to do a CR for less dilution.
I also don't believe in that way of thinking that it's only dilutionary if SH's don't take up entitlement. The fact is that the register is diluted, and SH's have given more money for the same percentage of the company that they had previously. Do you tip everything you buy? And by 40%?
CGV Price at posting:
7.6¢ Sentiment: None Disclosure: Held
