It seems like you missed the part where ainsleym suggested it...

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Yeatesy

1,244 Posts.

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10/12/21

11:47

Post #: 58210993
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Originally posted by ruthlessvillian: ↑

Ainsleym, you obviously an asx rookie so let me explain it to you. For the company to do the capital raise that you wanted would NOT be possible in 16 days. Firstly they would have to produce a prospectus and then lodge it with the asx for approval. That alone would have taken a month as asx is terribly slow doing there due diligence and would have been further delayed by the Xmas break( hence the holiday season reference). Then once it cleared asx diligence the prospectus would be sent to shareholders and the offer would open and shareholders would then have 2 weeks to send there funds to the company. That whole process would have taken until mid February, and they would have run out of cash in the meantime.Oh and many shareholders that don’t have spare cash would sell on market at anything above 4.4c to raise cash to buy the shares back, thus would have added sell pressure and driven price down. Management did the right thing here to get things moving fast and progress the project.

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It seems like you missed the part where ainsleym suggested it could have been potentially done as a placement to one or two strategic interests at a significant premium to Tuesdays closing price.
That is not un uncommon approach.

Who knows, maybe they tried and had no takers, or maybe they didn't try that approach at all?

IBG Price at posting: 5.7¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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