Why have an underwriting agreement that is so easily terminated ?
If "the company is suspended on the ASX for more than 48 hours ... enable Minimum Risk Pty Ltd to terminate the Underwriting Agreement"
Given Minimum Risk Pty Ltd is associated with the MD, and they can therefore call a T/H and subsequent suspension for a variety of reasons, I would not bank on $1.5M of funds being forthcoming by 6 March 2015
This is nothing more than a best endeavours placement, worded to be an underwriting IMO
Who will pay 5c per option with a 20c strike when the physical is trading at 6.5c and the price of oil is currently $49/barrel
Unless the stock is significantly higher, does anyone really believe the MD is going to call on his son to contribute $1.5M for 20c strike options at a cost of 5c each ? I highly doubt it
Quarterly showed $7k remaining at end of December, add in the $100k raised and you get $107k maximum for this quarter. They spent $144k last quarter on administration alone, so expect another raise, unless of course the $1.5M miraculously appears in March
CSP Price at posting:
6.5¢ Sentiment: None Disclosure: Not Held
