Fact 1 : From the date of LEI entering into HCG the share price traded vigorously from a base of 1.6c thru to 6.6c and then to where we are with GFC Mk2 and current market volatility reasons,
2. In respect to buy side support, this has not been insignificant buying and comparative to times prior to this transaction, there has been significantly more buying. You might want to look at the entire market during this time.
3. Shares on issue are currently approximately 550 million. Your figure of 946 million pre assumes a raising at current share levels which is not stated anywhere. If Pannuti had intended to raise these $5m suggested in the EGM notice at a fixed price, I presume he would have stated it.
4. In respect to wholesale dilution, 46 million shares (only 10% of your suggested uplift to 946 million) has been taken from the wholesale market. Moreover, this was placed with institutional parties whom have supported the stock in during these difficult last three months in global exchanges.
5. Given these acquisitions are agreed to be clever buying by the management team you appear to support, how else would you suggest that they are paid for other than paper ? This Company is diluting for value.
6. You refer to PAY FEES !! What other form of currency do employees receive ? Why would people work for anything other than fees ?
7. The long term shareholder is being looked after because this company is being built. Net assets have risen 4000% percent since Pannuti took this over. This has occurred in 9 months.
8. Why is it likely that more funds will have to be raised post $5 million ?
9. If the technologies were proven, where would the upside be ?
10. The company has never indicated question marks regarding commercial timing delivery. Why do you mention it ?
Your upside points are valid.
In respect to dilution. You are right. To have a smaller piece of a significantly more valuable pie is how to make money. What would you have done differently ?
Thanks again for your alternate point of view, but please do a little more research prior to posting ;)
Regards
Eyeknow
DYOR
HCG Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
