Ann: Trading Halt, page-93

Look, im not suggesting the CR is right or wrong (although to be able to raise $10m and the share price to hold up suggests it was a good move), however, I’m happy to back management at this stage. No point in jumping off a cliff without actually knowing the details.

Now, one thing I will say is that if you believe you can raise money, you do it! Capital management is very under-rated and many spec companies tend to raise funds when they need it and it destroys them. I recently bought shares in HAV (copper story), who should have raised funds when the SP hit 70c, but instead needed the cash 6-8 months later and found themselves accepting a finance deal which wasn’t ideal. They also ended up raising funds at 20c. The share price would never have seen this level if they were cashed up when the chance was there! There are many companies in the same boat.

Obviously management here were confident of getting it away because we are not talking a small cap raise. To bank another $10m now, means they can focus on ramping up growth. I also think given the size, they sense an opportunity to strike quickly and ramp things up.

I actually bought in today at 6.7c. Now they have plenty of cash, it’s up to them to deliver. No excuses.