If they stop working they wont get their licences renewed, it is still a delicate position LOM finds themselves in re Angola. I hope its a +$25m cap raise to make it worth it, Ill participate in full and am very happy to continue to dilute those don't / wont participate. Apologies if this offends long term holders but such is life - I have bee here for a while, and traded a few times. Must not fall in love with a stock, but play it for what it is. Companies are raising capital all the time in exploration, early production resources space. If you cant stomach that risk then maybe should by an ASX100 ETF or a term deposit. Those on the sell side and are "LOL" ing think they are right today, but in fact have missed a 100% trade in the meantime and this will further make their dream of getting their 50c back more unlikely. Cap raise here will allow progress on Merlin, expect big insto participation, they provided great support last raise and made some good money, they will be lining up in droves now off the back of recent news, and forthcoming kimbo sampling..
If you are crying fowl as a retail investor you could have bought on market at cheaper prices last year, or in the last cap raise, so just have to suck it up. Again apologies if this offends, this is the nature of the beast.
Ultimately, the company indicated need/ want for additional $$ by issuance of the 10c oppies. the fact that they are not in the money has brought the cap raise on early as their likelihood of exercise is diminishing.
There is probably a 0.005% chance that the oppies are being underwritten by the cap raise, but that doesn't make sense at current prices..
What would be great on the flip side is if the Angolan Gov converted their stake in the Lulo into LOM equity... Now that's an idea.. Likelihood of that about 1%...
LOM Price at posting:
8.0¢ Sentiment: Buy Disclosure: Held
