this may explain why Kev is so upset, where his main gripe is the CR at 1.00 (Block trade at 85c). And on face value, the company was having a momentum run with Renard to 1.49.
In an ideal world, a CR called then would be without CFTF in order to captivate the price at hand. A perfect world would be with CFTF but that takes an open door available at that precise moment. The problem that would have occurred under a conventional CR rights, given the deflating price of lithium would be that we go into a halt, ann 1.40 rights, but then the tide goes out, and no-one takes up the rights, as the sp dips down to 1.30, 1.20, etc. The alternative would be a placement, at say 1.25 from a halt at 1.40.
We have seen where companies can chase the market price, it is disastrous. I once saw a company revise its CR terms 3 times as the market weakened below the CR level.
So given the deflating sector, whatever the company did, it was prudent to rip the band-aid off quickly. At least, with the CFTF we did achieve a respectable 1.00 swap on equity for cash.
WR1 Price at posting:
55.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)