It is frankly extremely unusual for a Board to announce in advance that they are contemplating a capital raise in the future ... especially if it is obvious (as say for juniors that have no revenue stream) that such a raise will be needed. And the more obvious that it is needed, the less likely a Board is to talk about it, lest it become self-fulfilling in a path that the company loses control of. So, you almost have to ask why would a new Board make such an announcement? Either they are incredibly incompetent, or grossly inexperienced, or there is another explanation. And the only logical explanation that comes to my mind is that the new guys on the block (including their newly appointed director) now want to take over the Company or effectively assert control, and are seeking to do so in the most cost-effective manner (i.e. at a deep discount). It will be interesting to see what the register looks like in a couple of months. And once that is in place, watch for the "we were overly pessimistic - things are now better than we thought - aren't we splendid" announcement.
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)