my take on the capital raising , page-7

Hi Achan, excellent post, always good to see people thinking about the actions of the companies they invest in, two point I would make following your post......

achan168
"5. POSITIVE: 'sophisticated investors' are willing to invest in this company, even if it is at a price of 1.4c. If they saw no prospects for MHL at all, they would not invest, even at 0.1c. But as Brantley has pointed out, if the shares are not escrowed, then it represents a nice short-term return for these sophisticated investors."


Cabe
This assumes that these 'sophisticated' investors are just that, investors, and are not going to pump the stock back straight away for a nice little earner.


achan168
"6b. Another view is that the money from the capital raising will be used for other projects, and since the JV will only provide cash for the K-stan project, money is needed for its other projects. IMPLICATION: JV will still go ahead."

Cabe
Who says they can ONLY use money from this source for that project etc, it is out there only because that is what THEY have said in the annoucement (I gather), it is quite meaningless in the scheme of things and is just said to try and deflect the desperation argument - to say that they cannot use ANY money they have access to, to keep the company afloat is a nonsense!!

Thanks again for your post and good luck with such a long term strategy, 3 to 5 years should see you in the "Buffet" category!

Cheers

Cabe