It’s not planned, nor a board idea. Something we are throwing around in HC.
They would love the idea, funders, and shareholders alike, as it would place a floor under the SP, to support the credit raise, and in fact would increase the SP so the dilution is less and funding is more viable.
Only those looking for an entry don’t like it…as it raises the share price.
Consider the lowest price this project could be funded, so before anyone suggests it’s not a good idea, you need to know the lowest share price at which this project will fail. the lowest share price at which this project could be funded.
Sometimes, you have to take a risk to save the entire project. As, you noted, shorters could derail the project to point of diluting shareholders into oblivion.
Further, it’s not a capital raise to fund the buy back, but a capital raise to support ARU should timelines blow out. Then if they don’t use the excess cash, and as they noted today, as we are on target, the extra cash could be used to support the future credit raise price and subsequently decrease dilution. It’s adding shareholder value, that we all care for.
It’s probably enough air on this topic anyway, as it needs to be reviewed and modeled, and pass the ASIC test.
(20min delay)