Ann: Funding Secured to Advance Adina & Extend Renard Option, page-293

Renard was originally marketed as a no-brainer (which I agreed with), and it looks like the option/acquisition was already factored into the share price, even if little actual value was assigned to it. When Chris delayed the option execution by six months, he introduced uncertainty into what was previously seen as a sure thing. I’m sure I’m not the only one wondering what happens if Renard doesn’t go ahead—but it won’t be pretty.

I still believe it will move forward, but my opinion doesn’t change the fact that we’re paying the price for this uncertainty. I don’t expect any significant share price appreciation until the Renard situation is resolved. Chris seems confident that a deal is close, but I’ve heard similar reassurances from other ASX management teams before, only to be disappointed when nothing materialised.

Some may argue the delay was the prudent move, but the results speak for themselves. He may have thought playing it safe would protect shareholder value, but instead, it turned into one of the biggest own goals I’ve seen recently. I would have much preferred if he had executed the Renard option first and then raised capital—if that had happened, I’m fairly certain we’d have been raising in the high 40s or even 50s, rather than at 36c.

At this point, all we can do is wait. Either Chris secures a solid deal in the next six months and emerges as a hero, or he joins the long list of management teams that hinted at an imminent deal—only for it to fall through. Hoping for the former, but only time will tell.