Starlizard
I've worked in project finance but I've always followed the stock market.
CR are inevitable but the key is to do them with momentum behind you, not when the share price is in continual decline because the terms are IMO only going to get less and less favorable for existing shareholders unless there's a rights issue and everyone has the chance to participate but that means investing more money into an underperforming investment.
If its not a rights issue then it is dilutionary to all current holders and given VRC's cash requirements to go through BFS raising money down here or lower is going to get significantly more and more IMO. Remember I have said a number of times the company should have raised money already and given it hasn't it should do so now because IMO the broader market knows its coming and continually delaying it and trying to convince the market it's not needed wont work and any potential "buyers sitting on the sidelines" will wait until the issue is dealt with.
VRC is debt free just like MNS, BKT, WKT and SYR. It shouldn't have debt because it has no cash flow and it hasn't even done a BFS so IMO the company shouldn't even consider debt. Not to mention I've said over and over no one in the sector has been able to procure debt, not even SYR after raising $400 million in equity so I think the notion of accessing debt is nonsense.
I don't know Kabunga and can't speak for him. All I know is that if he goes over 19.9% by law he will be forced to make a takeover bid for the company. Does he have the financial capacity to launch a $50 million t/over bid (a premium to valuation today as you suggested). IMO that's extremely doubtful but again I can't speak for him.
@The_Earl_of_Loxley has made a number of intimations about who the seller is so ask him if it's the strategic fund? There's a number of posters on this forum who continually allude to knowing management, who's selling etc so given the lack of argument to the opposite of my suggestion it is the fund who took the stock at 10cents I will take it by the silence that I am correct. The earl has also suggested in the past that there was selling from a fund due to redemptions and the fact that this selling has been going on for a while and still is in this sort of volume then I think the assertion is correct IMO.
I will post the broker information when I am sent it and it will be correct. It's facts. No one is causing shareholder losses here (I only mentioned this after market yesterday to start with) except the market driving it lowers itself. Citigroup is an institutional broker (not retail) I'm talking about their selling volume only, not total volume. IMO it would be very unlikely Sunny could have an account there (plus he usually posts screen shots from Commsec), buster either as he said he has a broker in Perth or baliboy.
You don't seem to care if it's them selling anyway. That's your opinion. But IMO you want investors like that to keep funding the business. As i said, when they put the funds in VRC said "instituional investment fund is experienced in investing in the graphite sector". For them to be selling at a significant loss says IMO they don't believe in the project, or they're not funding it any further and/or they think the shareprice is going a lot lower or maybe for all of these reasons. I mean IMO why would you sell otherwise? Or they think the sector is just too tough at the moment. Who knows, I can't speak for them.
(20min delay)