From your article: 'So again the key issue with any type of capital raise – Renounceable Rights or Institutional Placement – is why the company needs the cash in the first place'.
In our case most of the AUD18.2m will fund stage 2 construction of the plant. Building our asset. If the share price falls to match the CR price of 11c that will be annoying in the short term. At 11c however, the intrinsic value of the share will have increased, because the company will have $18.2m more than it did on 28th February when the SP closed at 11c. That intrinsic value = 18.2m/738m = 2.46c/share. In theory this should be a force to drive the SP higher, but there are many other forces at play, both up and down.
ATC Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
