Share
130 Posts.
lightbulb Created with Sketch. 59
clock Created with Sketch. 07/07/24
08:31
Share
Originally posted by Chutney59:
↑
Hmm, pretty serious development with this announcement gang. I've got a few thoughts but I'll be careful what I say here, plus speculating at this stage is pointless. Firstly, the company owes shareholders and the market a very fullsome explanation. If we have a bucketload of bad news coming our way, you'd think they would have suspended the stock pending a further announcement. They haven't though, which is probably good news. I've been saying to friends for a few weeks now that this rights issue is overly ambitious given the state of the economy and the junior mining sector in general. It was always likely be a long way short of the full raise and if so, the company may not get much cash at all from it. Did many of you notice the carve out for Johnson's last loan to DTR of $950k and that under the terms of the raising, this was paid out of funds raised first, in preference to funds going into the company coffers? He was being paid out with newly issued shares at 1 cent of course, which is a clear sign of his commitment to the company, so positive in that sense. Notwithstanding, I have my own view on whether that feature would pass the pub test. Overall, it was highly likely that the issue would be significantly undersubscribed, and if so it may have achieved nothing more than providing more shares to the CEO and more shares to a Director plus the repayment of his loan. all at the bottom of the market at 1 cent. As I say, this was highly likely to be the outcome here irrespective of whether there are other factors that have resulted in this rights offer being withdrawn. Like the rest of you, I'll be waiting for the explanation.
Expand
It was ambitious as you say. Market is trading below the proposed price and no options attached, can't blame them for trying...
