Lets have a look at how MCO have raised cash in the last 4 years.
17th MARCH 2005 Placement of share and option 1,785,572 Shares @ 7 cents $125,000 raised issued to Martin Place Securities.
18th March 2005 Placement of share and option 7,000,000 shares @ 7 cents $490,000 raised issued to Martin Place Securities.
11th August 2005 Placement of share and option 7,059,399 shares @ 7 cents $494,157 raised issue to Mount Conqueror Minerals.
25th October 2005 Placement of share and option 2,500,000 shares @ 10 cents $250,000 raised issue to BRGM Nominees.
22nd December 2005 Placement of share and option 3,500,000 shares @ 10 cents $350,000 raised issue to clients of Martin Place Sec.
25th October 2006 Placement of share and option 7,911,012 shares @ 20 cents $1,582,202 rised issue to sophisticated investor group. Plus Underwritten agreement of 6,500,000 unlisted options $975,000
2nd Feb 2007 Pro-rata non renounceable right issue of options Issue price 1 cent $496,419 raised after 3,607,387 under subscribed.
11th Jan 2008 Placement of share and option 8,031,330 shares @ 30 cents $2,409,000 raised issue to sophisticated investors. ----------------------------------------------------
Not once have they had a retail rights issue.
The reason: MCO total issued capital = 116,629,743 shares Mr Nicholas Garling = 21,621,306 shares Mr Max Garling = 8,566,747 M. Bird = 1,435,000
Management own at least 27% of issued shares. For an example. A right issue offer of 2 for 5 share holding at 12 cents. Market cap = $18 million Managements entitlement would be 12,649,221 shares 12 cent share offer = $1,517,906 total(management only)
Max Garling is only on $100,000 p/a, so how is he going to find a large proportion of $1.5 million?
You will see another private placement. In these tough times, it will be hard to find a large investor. Probably another small placement, as in the past.
MCO Price at posting:
13.4¢ Sentiment: None Disclosure: Not Held