Thanks for this. Been reflecting on this and thought I'd do some calculations on this one. Let me know if anyone finds faults in my logic/reasoning/calcs.
1) As of Monday we have 108.3m shares on issue @ $0.29 closing price, giving a market cap of 31.4m (haven't factored in options). 2) If we are raising $6.5m @ 0.26 (taking this on face value), I'm assuming this will give rise to an extra 25m shares. 3) All things being equal (i.e. market cap doesn't change apart from additional cash), this implies a price per share post CR of just under $0.28 (37.9 MC divided by 133.3 SOI). Dilution (if I'm calculating this correctly) of around 1%.
To me given the recent trading trends, this isn't the end of the world, although there is a chance it stuns the current upward momentum from anticipation of the IBM deal (unless the CR outcome/announcement also contributes to the bullish momentum as was suggested). To be honest, I'm not surprised with the CR but am pleased because it was probably less than I expected (last raise was for much more) for potentially two reasons:
A) it appears some individuals are converting their loan funds (approx. 1.2m) into more shares (which are already substantial - from memory, most of the the individuals are in the top 20 and the top 20 already holds approx 75%); and B) it seems to suggest there is some planned significant inflow still on the way (i.e. Hamptons Life).
Only something the BOD / CxO's can know. I understand the perspective of letting the SP run a bit on positive news and raising at higher prices, but as many have said, we have a strong management/CxO team and they should do what's in the best interest of the company's longevity - so we need to give them the benefit of the doubt until they are proven wrong (at which case, we are entitled to crucify them). Until that time - go TTB and GLTAHs for tomorrow.
