If you go by what Seven has discussed then obviously a placement is not its only option. Lets hope not anyway. Regardless a placement for one thing is not always good news especially where there still exists substantial uncertainty about schedule for deliverables and when commercialisation will occur . In actual fact, contrary to other markets the Australian market has shown a slightly negative reaction to placements and a long run underperformance similar to rights issues. A large investor or intstitution will fund a project not necessarily because the company has a good product but because they have been compensated adequately enough in the discount. In the case of APG a discount will reflect not only the need for monitoring and other informational provisions but also for illiquidity. I don't think anyone is doubting the technology.
If you can tell me commercialisation is imminent, then I would be the first to support a placement. But if its being made just to fund working capital for the next 18 months, at which piont they again reassess their funding requirements, then thats not good news. It just signals that things are still progressing at a snails pace.
"...APG dont need success on all projects, just one would be enough for them to turm into a profitable company" Value is not determined by success of one project by by the total NPV of all its projects. Anything in excess of that is blue sky. Whether that is relevant to you depends on whether you are investing or trading.
APG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
