As we both know the company is a genius at raising funds from professional investors. Who else (apart from professional investors) would pay 25% above the most recent share price for a high risk investment? Even more bizarrely, shares could have been purchased in the past month by the investors at a 40% discount to the placement price.
Rather than being a case of dilution, it's a case of keeping the dream alive (by injecting scarce funds into the company). By boosting the kitty we are in a stronger position to keep the company comfortably afloat until a deal is struck.
Surely you can see that?
As well, for once, I didn't need to participate.
My reading of the current big picture is that what was said (by CI) at the AGM in terms of reshaping the company's future is happening. Further, the contributors to the placement have demonstrated a tangible commitment to seeing the company through until such time as a worthwhile deal is executed. A late XMAS present (and not dilution).
Clacko
APG Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
