With the funding, I agree with Fergusg that the placement and licence fees are probably nominal numbers to reduce shareholder dilution. And for the share price, there is nothing to blame management for. If the deal is not acceptable to APG (or Kronos) and it is off, what would the share price be now? Given that Kronos has been very sucessful in what they do for a long time without anything from APG and that APG has been struggling to survive for almost all its life, do you really think it is easy to negotiate a $12.5M deal which costs nothing for APG to deliver? Personally I think the deal is pretty good given the circumstances. Whether there is royalty in the Kronos deal is not important. What is important is that APG has actually sold a licence for cash and that Kronos will build the EARS into their large scale producing plants. Remember NZ Steel when all the work was done and not a penny was received? What we should really keep our eyes on is how and when Kronos build the EARS into their plants and how successful that is. The real royalty is the hundreds (or thousands?) of steel and pigment plants around the world that would pick up EARS after seeing the success with Kronos. And we haven't even started with the synthetic rutile thing yet. The trick with making money in the stock market is buy low and sell high. If you believe in the long term future of a company, buy when everybody is selling and sell when everybody is buying. Take a look at the buy/sell order queue, is it time to buy or sell? Call me silly for being an eternal optimist with APG, I picked up 500K last week and have another 1M to go.
APG Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
