Credit raises (Rights Issue, Placement, Placement) were the theme for GPP during 2016,
The 1st was a poorly supported "rights issue" where only 17% of share holders took up their entitlement - the funds were required for the CTL project and GPP to continue operations. This failed rights issue impacted the CTL project to the point that GPP were not able to complete the development, Flavelle also resigned.
This prompted the board to :search for additional investment opportunities....
https://www.asx.com.au/asxpdf/20160705/pdf/438c3dzsz7scys.pdf
The 2nd "Placement" (and investment opportunity) was for the now OHD project and working capital.
The November "placement" was the 3rd one for the the year, post Morabisi acquisition and was to provide the necessary cash to completely fund all stages of the Morabisi project.
Very valid point,
@Dogday22 if you go back through the threads you will get an idea of the hype that surrounded GPP's acquisition and the welcoming entry of the Li "experts" (minemark) into GPP - which coincided with the run up and spike of the share price, the welcoming love dissipated when they left the building .
GPP timed this "placement" perfectly, the company actually highlighted
@blastfurnace market reputation and track record in the Lithium space.
This "placement" is nothing short of "rinse and repeat"
- re: money raised to fund Morabisi that already had funds raised to completely fund it
- re: the hype begins again with Mr Borg "allegedly buying" on market and participating in the placement and everyone getting excited, the re-appearance of ex T20 holders that may have brought back in and not to mention the "pseudo" posters that have arrived.
What still has me perplexed is the company makes statements:
"Whilst the board is mindful not to unnecessarily dilute shareholder equity ......... (sic)
https://www.asx.com.au/asxpdf/20161121/pdf/43d1qn4841qysh.pdf
But announce a placement prior to any drilling or returned assay results, if their confidence matched their "Pilgangaroo District Scale" rival to "Greenbushes" content in their announcements then the anticipated assays being great = share price appreciation and placement at a higher premium = less dilution.
There was no urgency for a placement at this time (IMO)
@TheSower Suggesting that the "current" placement share price will match the one (Nov16) or even maintaining a stable higher share price is a bit of a stretch of the imagination considering that we will possibly wait 20 - 22 weeks or so for any assays to be reported, less if they drill/send/report each hole as it is completed - or at least throw in some pictures of the cores..
All the above IMO only ....
cheers
