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Could be a J/V deal with a Greek Telco business that should not...

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bluerunner

76 Posts.

06/07/15

11:12

Post #: 15585985
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Originally posted by BobbyKennedy ↑

In the last quarterly, they had $344k and they forecast to spend $110k in the following quarter. So lets say that spent that $110k to June 30. That leaves them $234k to make the acquisition AND fund the next quarterly costs of $110k (one can safely assume the costs are flat).

So really, they have $124k to make the acquisition. I think you see where this is going now.

They will shortly announce a capital raising. With the amount of shares on issue back up to 500m, this will have to be huge. Dilution will be extreme. Confidence in them will be zero so the raising will ultimately fail.

If they're not raising a large amount, you all MUST ask yourselves if the deal is so good, why would a exploration company with bugger all cash, seek to pursue it? And why would they win the bidding war for a great asset when they have no access to capital? IMO, this is the same situation as the Ukrainian deal. Total garbage.

PS great time to raise capital. Smack bang on the day that Greece voted no to the EU package. Laughable.

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Could be a J/V deal with a Greek Telco business that should not require a great deal of capital ??

AWD Price at posting: 0.5¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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