Not sure now, I think the current selling is a lot of retail panic, so many spec companies are hitting new 12 month lows, resource prices are being pushed down by a slowing economy in China and US. Lets not pretend it is not hard ging out there at the moment, if you purchased a house based on the reserve banks forecast of near record low interest until 2025, you would have bought at elevated property prices, then had to cop this inflation that is juts driving everyone into the dirt, if you need money you sell your shares before your house, and this is what is happening I think. opening at 1.7c possibly, $12 million market cap, over $17 million in the bank and active sampling happening in Quebec has no logic, but not much does on the asx at the moment. the flow through shares where transferred across at 2.2c, so they wont be selling at the moment for a loss, these shares will come back into play when the SP gets back to mid 2's, we also then have the employee shares to deal with then also but that is not a huge amount. Hang in there people if you can, I think it is going to be a rough ride for a while.
just a note, have a look at LLI, did a flow through share raise in may at a 73% premium at 45c, the block trade was done a 23c onto the asx in May. their SP has gone from 25c down to looking at 9.5c on opening, I think even the insiders that got the cheap flow through shares are now hurting badly.
MLS Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
