They're pushing ahead with a consolidation, which, on the ASX, almost always results in a drop in market cap between the announcement and execution, eroding shareholder value in the process. The usual motive behind these moves is to raise capital at a superficially higher share price. But what's the point of that if they're just going to raise funds at these depressed levels anyway and dilute existing holders into the ground?
Who in their right mind would participate in a capital raise with this crew, especially with a consolidation looming?
They already raised $7 million six months ago, another $1 million five months back, and pocketed $1.05 million from R&D incentives four months ago. That’s over $9 million in half a year and somehow, it’s still not enough? Now they’re coming back to the well to dilute shareholders at all-time lows. It’s laughable.
OSL Price at posting:
0.4¢ Sentiment: Buy Disclosure: Held
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