The news of the issue/placement is a very badly kept secret. Obviously the lucky recepients know about it. I also believe that some associates/advisors to the company are not happy and may be acting to try and stop or modify the placement and issue.
What annoys me is that all the company's and Chairman' statements have been incredibly upbeat and here they are in a position of potentailly increasing the number of shares by up to 100% at a huge discount. Why is this being done so badly. There is an old addage that you should never put an exploration geologist in charge of a public company.
The issue as currently proposed will obviously provide a series of potential overhangs in the stock. Firstly from current shareholders who will no longer trust the directors and sell. Secondly from the "sophisticated investors" (speculators) who are turning a profit at anything over 35 cents.
It has been put to me that the shareholders are going to be offered 1 for 4 at 35 cents and an option excercisable at 60 cents. This should be done on a 1 for 1 renounceable issue basis at the very least and the argornaught placement scaled back to reflect that. The company may by now be realising that shareholders are not going to be amused and be trying to come with something else over the weekend. They definitely need to do something about the board and get some expertise in there to ensure proper governance.
As I alluded to in my earlier post there needs to be a forensic examination of who got the shares in the placement. This needs to be done thoroughly to indentify associates of the company and it's directors as they will not be able to vote thier shares. We need to get the authorities involved or form some sort of shareholders group to investigate the prospect of legal action.
As stated before I consider myself a long term shareholder and have around 800K in different names so I am definitely not happy.
Cheers for now
AUR Price at posting:
55.6¢ Sentiment: Hold Disclosure: Held
