I'm a little sceptical at the moment with the way the AGI board are treating their shareholders. This letter to shareholders is a joke.
Why didn't they tell their shareholders about the need for further capital 6 weeks ago when the share price shot up to 74 cents. They were very quick to tell everyone about their sales in Europe, and to reward themselves with plenty of cash and pats on the back for losing $12.5 million the year before, and even came out with an ambiguos report saying they had made their entire 2004 quota with these European sales, when that wasn't the case.
Now they want more money. Any fool could have seen this coming as the figures did not add up, and I did warn those on Hot Copper about it.
$13.5 million is a drop in he ocean for Len Ainsworth. If he is so certain of the mint AGI will supposedly make, then why doesn't he cover it.
I will bet anything that this is not the last time they will be going to shareholders for more money so don't be surprised of there are further capital raisers in the future.
I would not take up this offer and am confident that in the not too distant future one will be able to pick up this stock at a lot less than it is trading for now.
AGI Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)