I like it. $6 million locked away with the underwriting standing up. Dilution comes with it of course but it's positive that yet again Sandpiper has supported the necessary capital - there's certainly been plenty of doubters the last few years who have thought UCL would be finished but even in the very worst of the GFC this project has attracted capital.
Note that Twynham, John Kahlbetzer's group, has not only taken their allocation but is also going in for some of the shortfall. At about 32% of the company already it will be interesting to see where he gets to. It's a strong vote of confidence in his investment and given the range of agricultural interests and important vote for the rest of us.
Also it's pleasing that the directors who were entitled to, have gone for over and above their entitlements as well. Definitely no complaints from me to have directors buying. :)
I'm not so concerned now re the threat of overhang from any shortfall as it seems that there's been a strong long termers approach to the raising. Hopefully Patterson's are bringing in similar types of shareholders from their client base to soak up the balance of the shares.
The two questions I have left from this raising are i. how have Patterson's gone with subscriptions for any shortfall (I have heard positive rumours but nothing substantiated). ii. Just who was it who bought the rights to approx 50 million shares that were sold on market?
UCL Price at posting:
45.0¢ Sentiment: LT Buy Disclosure: Held
