I think you are making a very big assumption here. I can understand why because 90% of firms go to the usual local brokers for an equity raise who will dump on market two seconds later for pips and the SP is train-wrecked until there is sufficient volume to wash them through. I own shares in a couple of those companies myself!!
BUT, i think this will actually be one of the rare times when this is NOT true.
1. Ross referenced bringing in Canadian institutional investors at the webinar with a view to laying the fertile ground for a TSX listing over the next 6 months or so.
2. I know for a fact that they could have easily sourced the bridging finance from their own largest investors but that was not deemed the best strategic approach.
3. They now have multiple news events including the permit, the forward modelling of the economics of the projects to show these new investors the forward trajectory of the company.
Lets wait and see till Monday but i think we will read that new international investors in Canada have taken up the raise. I think they are actually using this opportunity to raise a little bit of money as a strategic opportunity to get the right institutional investors set who are going to then buy into their ESG story and support the company as it rapidly gets re-valued with the news flow that we all know is coming over the next 3-6 months.
I expect the same folks will then be involved in preparing KPO for a duel listing on the TSX as Ross discussed in his recent webinar but i expect the share price to be multiple bags from where we are now as we have lots of news e.g.
1. Financing finalised
2. FNTP and payment of probably closer to $10M AUD now with the CAPEX cost increase and the CAD strengthening
3. Possible news on two projects around Geothermal and mechanical compressor stations that Ross referenced in the webinar
4. Possible governments grants associated with TAR Sands application or any other (they have submitted at least one)
5. News on a gas acquisition
6. News on the successful capture of further leases on the 3-4 extra 64MW sites they are preparing for.
Lets see if any of that is actually in this coming annoucnement. I agree with
@Starrr the wording is quite vague!
Everyone knew a raise needed to happen. Ross as good as said it at the webinar, But I just have a feeling the dark days of Kalina are about to be behind us.
(20min delay)