recent cap raisings

Koolkat I’d like to acknowledge your sources on nailing the terms of the most recent cap raising prior to it being announced. Well done KK and thanks for sharing that when you did.

This week I followed up with the company about Resolution 5 form the Oct 25 GM and the stated objective of raising $5m for AML development and working capital.

Pretty much the response I got was that it was much debated about the best way to raise the money and that they decided on a number of small issues very much in line with what Silver outlined in a post on 25/01/2012. In fact Silver articulated it very well, so refer to that post if you need further clarification.

The company implied that roughly $3m had been raised since early September and that the options will raise close to $2.4m if converted. Given they are already in the money and with good news flow expected the company stands a good chance of reaping this cash at a later stage. (From memory I think some options have already been converted).

I tend to think Rolf makes a number of good points when he contemplates how Balam Group is viewed by the company. I too was referred to the recent AFR article and that they didn’t know much more about Balam at this point in time. (I guess they are in the process of finding out more about them).

If Balam didn’t participate in the recent raisings then that’s not such a bad thing as far as I’m concerned. If the company has found other SI’s to help fund development then that makes good sense and means we’re not reliant on one major shareholder.

Must admit that it’s hard not to be envious of the free options given that most of them are in the money and hopefully we won’t see too much more of that or we get to participate next time around.

I’m still comfortable holding for now and looking forward to how things unfold throughout 2012.