IMO its helpful to 'leave something on the table" for placements to sophisticated and wholesale investors as a raising of significant size conducted overnight is different to a days trading of a stock. It also provides certain cash in a short period of time.
Having said that I prefer a partial sale of assets (assuming a price that is greater than value attributed to a discounted raising) than a discounted equity raising as it can result in a greater share price in the long term.
Along this line, AUT has acquired 500 net acres plus another 500 net (approx) under negotiation. This may cost $15 million is lease fees (@ $15,000 per acre) and after a capital raising to pay for this the benefit of extra acreage may be netted out due to dilution caused by extra shares issued. The price paid for the extra leases will be an important factor in determining if the extra acreage leased creates share price value imo.
Impact
IMO its helpful to 'leave something on the table" for placements...
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