Ann: Spitfire raises $5.33m in oversubscribed Placement, page-13

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wilef

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18/01/18

20:43

Post #: 30399198
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Originally posted by CYMON ↑

The thing to understand here is two fold. Raising funds via SPP costs a fair amount in both time and money. Further, after a month or so provided for retail holders to sign the forms and transmit the funds, should the SP have moved unfavorably the company risks not being able to raise the required funds. The most annoying aspect, however, is having to wait for a good portion of said retail holders to sell and lock in profits or sell prior issuance to raise funds to make payment. It would have to be one of the more painful methods to raise funds.

On the other hand, raising via placement allows required funds to be within the companies account within days. If i was a manager looking to progress an asset, I'd be doing the same.

Sure, some people may have missed out on buying at $0.10 but if you believe the company will do well and the SP increase to multiples of what it is now, paying $0.125 really isn't an issue. If you were looking to take the stag profit, then yes, i could see how one would be upset.

In any case, i would dare say that we are fully funded for exploration and subsequent raisings will be significantly higher.

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"should the SP have moved unfavorably the company risks not being able to raise the required funds."
Raising Capital can be fully underwritten.

SPI Price at posting: 12.3¢ Sentiment: None Disclosure: Held
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