I think the company has to cover an unexpected transaction of shares and to cover the transaction they are doing so by issuing a new allotment. But they have to issue the allotment of shares at a price they believe the company is currently worth. Than cannot use the speculative price of current share pricing we see here today.
This company is in its infancy at the moment and has got a long way to go before real production. But its going to be another 2-3 years before this gets off the ground.
Having said that i think there is potential for this company to get over the hurdles but it is a way of yet.
RNU Price at posting:
16.0¢ Sentiment: None Disclosure: Not Held
