G'day all fellow (currently suffering) CDX shareholders!!
Hope you are hanging in there OK, and I agree from the latest announcement that there is a good chance that we might be trading again either this week or next week.
This may well be my optimistic nature "talking", or I could also just be completely dilusional , but is there any way that the upcoming funding package will be done at a premium to the last traded share price of 13.5 cents (with the placement & raise done at say 20 cents - or even at 30 cents like the last CR)?
The announcement read (in bold below):
This will be announced in detail over the coming week(s) but will likely comprise of a package of funding that will balance the immediate needs of the Company, the ongoing needs of the product and business over the coming 6-10 months, and allow a planned pro-rata offer that will provide an easier to access opportunity for participation by existing shareholders.
This will be in addition to and supplemented by a significant level of committed support by C2 Ventures Pty Ltd (“C2V”, owned by Niall Cairns and Craig Cooper), who will also fully participate in any pro-rata offer.
Separately and in addition to any pro-rata offer or placement C2V will be providing substantial funding commitments under a Funding Facility that is currently being finalised as part of the wider total capital raising package as discussed above.
So it is pretty clear IMO that Craig & Niall are going to major players (again) in this funding package, and that they will be inputting some significant funds into CDX via
1. A placement to Craig & Niall.
2. The pro-rata offer to all shareholders - which Craig & Nial will also participate in.
3. A funding facility by Craig & Niall.
Clearly they would get more "bang for their buck" in this funding package by pricing the placement and pro-rata offer at the current CDX share price or lower.
But given their already massive shareholding & their very apparent desire for CDX to succeed, is there any way that the upcoming funding package will be done at a premium to the last traded share price of 13.5 cents (which is a market cap of just $19m)?
Doing this placement & raise at a premium would certainly add value to their existing large holdings, and it would also assist the company with any further raisings going forward - say 12 months down the track.
Occasionally I have seen these placements & raises done at a premium - especially when the majority of the raise is being done via major shareholders & other shareholders, and also when the share price is very depressed for "slightly unusual reasons" (like in this case).
As I said at the start of this long post, I may be completely off base here, and the placement & raise may be say at 10 cents or even less.
But wouldn't it be great to see this placement & raise done at say 15 or 20 or 25 or 30 cents.
I would certainly be sticking my funds in alongside Craig & Niall - if this was the case.
