@nickster I believe you have it wrong mate and I say this in a kind way.
A material update that has a positive affect on price will always need to be made prior to a CR so that no one can say that the instos being offered new shares have an advantage or were issued shares at well below MV. The board would open themselves up to major legal issues if this was the case. The board have done the right thing in mho. My only concern is the quick timing post Resource Update announcement. It would have been better to allow another day or two of trading post Resource Update announcement to see if other interest could have kept momentum in price rising which certainly would lead to a better valuation for the CR using a VWAP type calculation.
CR's are always done at a discount so I would be fuming if a CR was done and then resource update released shortly after. This would only benefit participants in the CR.
This CR feels different, timing is very strange indeed?
The stock was starting to move and I think another day or two of trading post resource update with the POG price increasing would have stuffed up the VWAP for whoever is coming on board to get some cheapies whilst still playing by the rules.
This is the world we live in and instos are greedy and want cheapies. Maybe a now or never deal on the table in my opinion.
Hopefully by Monday we find out who the crew with the $$$ are?? Hopefully it's a raise that just covers what we need untill stage 1 as it would be stupid to raise $50M right now rather than do say $15M now utilising our 10% placement provision. We can go for stage 2 funding later or even better, forget about stage 2 funding and just be taken out a fair price.
I'm hoping Milan and board have just gone for minimum CR sufficient to protect their own positions also from excessive dilution. Milan's breakeven would have to be well above $1.00, could be somewhere around $1.50 as a guess, or even higher. $50M raise now at these prices would mean most holders will need to stump up alot of cash to preserve positon, even Delphi would have to stump up a big amount. I don't think that Milan or our majors would see raising $50M now is a sound option with stage 1 production about to commence in a month. This would be ludicrous as cashflow will strengthen with stage 1 and 1 or two good quarters will re rate this unloved stock.
Hopefully we get a nice surprise