Re today’s placement, HAV did include it as a funding option in its 04/25 QR, see section 8.8.3 of Appendix 5B.
As to going this route rather than a rights issue or SPP as many (including me) expected, here are some thoughts:
• Whoever has been working to hold the SP back has contributed to this placement being at a lower price than it otherwise would have been. When you consider how much Au and Cu prices have moved and the volume of M&A activity since the last SPP, both raisings were at 18 cents.
• Given the administration involved with a RI/ SPP, this placement ensures HAV is funded for the time being, giving me the impression that HAV can focus on something value accretive instead.
• Anyone who was waiting for a CR to top up will now need to buy on-market, potentially putting a floor on the SP.
• HAV has a supportive substantial shareholder base. Any ‘sharks’ out there seeking to take HAV or its assets at a substantial discount to fair value, have been put on notice.
Onwards and upwards.
DYOR
HAV Price at posting:
18.0¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)