234m shares is about 1/5 of shares currently on issue. This means they are giving away 1/5 of the project to raise $60m.
They are selling 1/5 of a $2b+ project for $62m.
This means with 2-3months to ramp up these people are buying 1/5 for next to nothing.
Long term investors have been given nothing and are actually having their equity diluted by 1/5. If you had 300000 shares you just lost 60 000 in dilution.
Its been the longer term investors and not the instos or sophisticated investors who have supplied money in past capital raisings yet they dont get ab look in
The money is for "To strengthen GBGs balance sheet and maybe used to fund contributions to Karara Mining joint venture if required during the ramp up of the joint venture"
They are raising money that may in their own words may not even be used. Why didnt they raise extra $40m when they did the last borrowing.
I feel shafted too and I hope the price goes up from here but I wont forget this when it comes to the next vote.
I feel like we retail shareholders have been treated like fools.
Its about time retail shareholders gave them a shakeup when voting on any future issues including salaries and director reelections.
Cheers Gmac
GBG Price at posting:
29.5¢ Sentiment: None Disclosure: Held
