Yes Carpenter, there's no argument about the appetite for capital and cash in the shale business, and the fluid leak and shutting down of Wilson 1 would not have helped, but pulling this stunt twice is unacceptable in my view.
They made no case for an urgent accelerated raising, especially at that level of discount. An entitlement offer, whether renounceable or not, would almost certainly have raised a similar amount, both now and last December. No one would have felt cheated and the Directors could have demonstrated loyalty to the shareholders who have supported this Company through upheavals and reinvention.
I came in on the coat-tails of Yeager, so haven't lost faith in his vision, but...
Unless things are a lot more dire than they seem, or the directors are more amateurish than they should be, there is a slight whiff of crony capitalism in the air.
At the very least, this shouldn't happen again.
And unless I've missed it, the ASX has not sent out a "Please explain" either to Freedom or less likely, though perhaps of more relevance, to Morgans.
FDM Price at posting:
20.5¢ Sentiment: Hold Disclosure: Held
