tranche 1 - 94 million shares will go to insto -- bang they just got a huge ownership, and huge voting power, with none of the risk to take this company to here. if you think as a retail holder your selling and buying back at this point ... your dreaming .. this will only be open to insto's and the price is likely only going under $0.19 on open market if this move fails (at which point the instos will be the ones dumping the stock).
this is normal... it's not in the BEST interest of existing long term owners but it is normal and ultimately good news for long term interest of the company.. insto's will bring their connections in and this company will be much stronger.and has a great chance to expand and do well.. a chance .. again a reminder the way they doing this CR is to protect insto -- so yeah not really in the best interest of existing long term holders (there are other ways to raise funds and/or fund expansions). this is the easiest.
tranche 2 is subject to share holders vote and approval - im going to guess the vast majority of the 157 million shares going to instos. so again existing long term holders lose -- so sorry .. and price ain't staying this low for long -- I have to get it off mugs on open market as quickly as I can now as last chance prices stay this low -- it's nearly at the bottom now so I'll if I want to maintain my ownership I'll have to risk more and buy open market as doubt I'll have a chance to participate up to my large holding volumes ..
maybe some small holders who are traders it might work, selling now and you will get to buy a % back, but talking pennys compared to what this SP could be worth.. again could be worth.. plus say hi to the tax guys for me. also goodbye -- you short term traders just hurt the SP mostly anyways
-- ultimately this is great news for the company .. and if the company does do well (even the existing long term holders will benefit in form of SP $ - again if it works).
my advice was hold, wait to see details for tranche2 -- nothing else you can do now as an existing long term holder and risk more upto the options your got and hope the expansion works out.. alternatively one must risk more now and buy off the mug traders down here.
this is just my thoughts - please don't shoot me, people should be free to speak their mind here. so people can make educated choices. sometimes you gotta take risks, I prefer risks that don't reduce my ownership or at least give me an option to maintain it. (currently unknown - but likelihood not good for tranche 2). will likely be capped --- anyone does the math or want to guess to what? i assume very oversubscribed so won't get full amount regardless.
AL3 Price at posting:
21.0¢ Sentiment: Hold Disclosure: Held
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