It is a very clever raising...SP has risen and they are doing the raising now to minimise dilution...well done to management.
I see too often junior resource companies raising money at ridiculously low shareprices which requires LARGE amount of shares to be issued to raise a reasonable amount (which kills the capital structure of the company and the therefore the multiple upside potential). And often at a large discount because the company hasnt done anything exciting.
They could have made a part call on the convertings, however SMART to keep that for a later day.
No doubt raising will be at a discount to current SP, but it wont be much of a discount imo since the recent drill results put the company in a very strong bargaining position. Only small issue I have is that it may have been better to wait for next update before negotiating cap raising terms.
Any downside to SP will be great top up opportunity...I am freeing up cash for such an eventuality.
Cdchi1
ERH Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
