Agree. The cash buffer is a little thin even after including...

Agree. The cash buffer is a little thin even after including Acuity controlled placement facility. They’ve burnt thru nearly $18m since last cap raise? Gosh.

The summary in the prospectus of how funds would be allocated indicates LPD is guiding toward “letting go” of their recent hires if the cap raise is poorly supported. Very poor situation.

I began looking at the selling volume going through today (at/below raise price). Large holder(s) exiting is my first assumption. Another possibility is rotation by insiders. A simple two step comes to mind as follows;

First: reduction by GJ/SM of their entitlement position, then

Second: GJ/SM “participate to their full (at now reduced levels) entitlement” as announced to market … but at zero cost… by milking the market.

Why this speculation?
Recent LPD announcements rope insiders into “participating in their full capacity”. If GJ has obtained agreement from his fellow Strategic Metallurgy Directors (to honor LPD statements) then I speculate that SM Board decided the way to do it is to sell a portion on market (distribution) and recycle the net proceeds into the cap raise. This would technically honor the LPD Board announcement … but in substance it would be little more than maneuvering to pay lip service to LPD shareholders.

Positives - this would see much needed funds channeled directly into LPD to keep the lights on.

Not so positives - this would also indicate GJ/SM is unwilling to tip in additional funds and/or increase their holding in LPD at this time.

Above is just a speculation so all will be revealed in time. I will be interested to see the s604 from SM and the timing of that release.

Tricky situation for LPD. Plenty of risk here.

Go the slow ‘pus
AM74