The aim of these announcements is to update shareholders on the current state of the business. They are not fluff announcements "to put the options in the money" ASX listed companies have a legal requirement to update the market on new business. If my maths is correct which i believe it is, Regal have a little number of shares left to clear and the trading is representative of that, once they are fully cleared I hope to see a steady climb in SP and I suspect there will be further news flow to come as indicated in their announcement this morning.
You also tend to see a trading price at about 15% lower after a capital raise in small caps, which we have not seen here. It has pretty decent support.
You are merely speculating on when or if they need to do a cap raise. If the business continues to grow in this manner and some much larger clients sign with a higher revenue then they may not need to cap raise at all. I am just happy to see the business growing and kicking goals. Been doing this long enough to just sit back and follow smart money (you will notice none of the top holders are selling just buying more) new institutions buying with no discount, but hey I suppose all of those things are meaningless....right? If McConnel executes all of his options which I have a very strong feeling that he will, it will send a huge smoke signal to the market which I imagine will cause an incredible re-rate along with the further new flow to come as their pipeline is growing.
Shame people always need to look at the negatives. Even though they can be easiest to focus on.
AV1 Price at posting:
9.9¢ Sentiment: Buy Disclosure: Held
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