re: Ann: Quarterly Activities and Cash Flow R...
@seuss - I agree.
They raised money to do X, and there is a further $1.8m in in-the-money options that expire before the end of May next year, so now they need to complete X before they raise more money.
From what I read the drilling has not started yet due to the flooding? If this true, the reason for the fund raising is because of the floods then the company is asking the shareholders to be their disaster insurer.
The alternative is that the additional funds is for inorganic deal making i.e. the acquisition of more tenements. If this is true we need to question the company's ability to fund the development of all of its assets within a timely fashion- i.e. how much faster could AQC grow organically that is if it had $50m to $100m in cash reserves? If the answer is materially faster than its current growth rate and development progress then what is the optimum capital that it needs?
As a minor shareholder who used to have around 1.5% and now around 0.5% I don't care about dilution- I just want to see the shareprice go up. However the major shareholders (who are also the management team) have an interest in slowing the development of the company to preserve their equity position.
The final question (for this post) is whether AQC's strategy will be to essentially trade tenements sort of like a property developer - buy, fix-up and sell on. i.e. develop an organic inorganic strategy.....
These are some of the questions in the back of my mind as I contemplate this stock.
AQC Price at posting:
8.2¢ Sentiment: Hold Disclosure: Held
