Finally a little bit of positive news after all the shocks from the AGM agenda items!
Firstly, the raise is pegged at 1.5c, which is probably the first time as far as I remember this company is raising at a premium to its last traded price. Taking into consideration Tribeca's involvement, plus big raise, no free options involved in this raise for the punters, 1.2c-1.4c range pre TH, and all the suspension dramas, I reckon the trio of the brokers (Tribeca, Sanlam and GVC) have some confidence on the news/future potential what's going to unfold. Else, how are they going to convince their clients to bid at a premium after all the shite that has happened in the past 3 months.
Moreover, pegging it at 1.5c now gives less motive for any large holders/brokers to smash the price on the negative sentiment to buy them back later cheaper...this has happened in the last couple of raises. I hope (yes I know, hope is not a strategy) 1.5c acts as a new base. We possibly might see a dip first to clean out all the unhappy holders and then stabilise at 1.5c. Without free options, the sophs and prof. investors need to see some "value" at 1.5c, so there could be a small pump....timing wise they need to get as many votes as possible too for the AGM.
As much as I hate all the dilution and the 1.5billion shares on issue and millions of free options floating around, I think this is a better CR outcome that I anticipated. 10mil cash for a 22 mil company with some solid revenue figures is not bad.
Considering AGM is at the end of the month, and the expected issue date of these new shares is at end of Feb, why they want to release this news today after market hours? Are we going to see the news come out tomorrow, and these notices are pre-cursor stuff that can be released before hand? Or, as usual radio silence again tomorrow with no idea of what's going behind the scenes?
But hey...don't listen to me please...I'm the chief sheeple here, day dreaming and hallucinating
