As for a $50m rights issue, I think it would struggle on two counts. Firstly, I very much doubt any broker would underwrite it there which would make it prone to failure, and secondly in FY16 they raised >$100m from capital markets but cash only increased by $34m. That means in a year where they brought in about $140m in establishment fees and land sales, they still needed to raise >$66m. The cash requirements of this business are staggering and I doubt $50m would get them through a year, let alone to a point where they can start harvesting their bigger plantations and finding out if there's a market for them. It would likely be viewed as good money after bad.
QIN Price at posting:
29.5¢ Sentiment: Sell Disclosure: Not Held