Hi oslo, yes but it is also possible that electric car sales could pick up and cause an Li supply shortage. Particularly if oil goes up in price and fast charging Li batteries enter the market. See here.
No body will want a petrol car anymore when you can buy an electric car for the same price and it costs 10 x less to fill up the battery almost anywhere in under 1 minute.
According to the AGM slides GXY is generating revenues in excess of $3.5m per month and increasing. So they do not have any imminent cash flow problems or the need to raise so much money from a placement. The effect of the rights issue on the share price is what has everyone concerned at the moment.
However, if not may shareholders subscribe to the rights issue and the sp drops anyway GXY will become an extremely attractive takeover target and it might be worth holding to see who ends up taking over GXY.
GXY Price at posting:
7.8¢ Sentiment: Hold Disclosure: Held
