One way to look at it is that the SPP issue price is higher than earlier this year, when sophisticated investors were issued shares $1.3 mil worth of shares at 2.3c.
I think this reflects a marginal derisking of the company, which is obvious when you factor in that farmin negotiations are now much more certain (no, not guaranteed yet, but closer than it's ever been).
Time will tell whether the board has managed to extract "maximum value for shareholders" as was quoted as the reason for the delays. How much are the third party willing to committ financially and what % are they demanding? This will determine the price in the short-term.
On the other hand, disappointing to see that the perfect storm of Redhill + Xanadu + Shale gas farmin could not be pulled-off; but that's not to say it doesn't continue to hold substantial potential for the company.
NWE Price at posting:
2.6¢ Sentiment: LT Buy Disclosure: Held
