Ann: Trading Halt, page-118

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27/03/22

14:48

Post #: 60450494
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Originally posted by Maccajohn: ↑

A few comments and facts:

1. If they were making an acquisition ie taking over another Tennent or company they would have announced it at the time of the trading halt. So it appears the capital raising is not for this purpose.

2. In one of the announcements on 15 or 17 March they stated the company arranging the debt facility was still undertaking DD - this was a sort of possible red or yellow flag to me as to why they were doing DD so late - ie it is possible that company decided not to arrange the debt facility after 17 March that led to the capital raise. If this happened it is not a good sign and if it did I don't understand why they did not decide to go for a smaller debt arrangement. $100m still leaves them short by about $40m which maybe what the debt facility will end up being. I also don't understand why the debt package was not arranged months ago when they raised more equity - sort of raises doubt in my mind about the financing of the development (I would expect any sensible company would raise the amount of equity ($85m) once they were assured the debt arrangement would be available ie with very high confidence)

3. The other possibility is that due to the good drilling results over the past few months they have decided to expand the size of the mine etc. no idea if this is anywhere a possibility.

There has been a lot of criticism of TIE on this thread but maybe it should wait until further details are released. Maybe it won't be so bad.

Nervous times but not much anyone can do about it.

I have been watching the stock but yet to buy but May after the air is clearer next week.

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Good comments.

Re your comment 2:

* TIE arranged the debt finance shortly BEFORE the $85m CR, but the debt finance final agreement was subject to DD. Yes, the DD went on for a long time. Maybe TIE lost patience rather than Taurus pulling out.

* we don't know if they're still short; it depends on the latest build cost estimate. Anyway, raising a much reduced amount of debt should be easy.

TIE Price at posting: 58.5¢ Sentiment: Hold Disclosure: Held
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