Hi gang,
sorry for delayed post but was on the road all day heading towards Byron.
Just to be clear, the ASX listing rules allow for a back to back trading halt in order to give the company more time.
Having been involved in hundreds of cap raises over the years there are many issues to consider, as no 2 play out the same way.
The company didn't really need the cash in my view....but I am not privy to what corporate transactions may be around the corner so it really makes sense to raise at this level than where we were even a few weeks ago. Of course having only recently bought in myself at not much lower than here, I of course wish the price had doubled from here before we raise.
I have tried to get info from as many of my contacts as possible and have pieced together what I think is going on, however as its not confirmed and all hearsay I will refrain from sharing at this point in case I have it wrong.
My colleague had a 30 min teleconference with Gianmarco yesterday, but since I was driving all day with my family in the car I didn't get to talk to him till late last night. From what he told me, the company felt it wanted to bring on board a major Institutional Investor which is what they have done. Gianmarco is a corporate guy, and clearly understands how capital markets work...so in my opinion, he hasnt put a foot wrong as yet...and its hard to make full judgement when we dont know everything thats happening behind the scenes.
Regarding the price, some would say it was done at the market price but as we all know, the stock has jumped so much in the last week that price now looks like a big discount. Why I am not concerned is because from what I heard there was very little available for retail. So we shouldn't see the usual pattern of people selling in order to participate as there simply is no stock to be had. So anyone selling would likely be kissing their script good bye and potentially having to pay way more in a week or 2.
I would assume part of the reason for the double Halt is because the cornerstone was likely still completing full DD and the SP kept rising, and we couldnt just increase the price on them to match the rise, so management would have made the call to call a halt so that the gap or discount didnt look to big.
My colleague said he found the chat with Gianmarco very beneficial and is going to send me his notes and go through it in more detail, which I will try share over the weekend if I have time and if I can find some time to get sober....otherwise early next week.
Some really good posts happening here guys, thanks to everyone who is contributing. It is really remarkable how under the radar this stock still is at the moment as we are really a small crew of followers. So far no haters have arrived and the threads are all polite and respectful...just the way I like it.
However once the news of who the cornerstone investor is gets out, I think the herd will arrive. So make sure you are all set with the allocation you feel comfortable.
Not advice, and dont invest what you cant afford to lose.
Now off for a swim and be first in line for the bar to open.
GLTA.
10x
Expand
(20min delay)