The LDA facility is no different to a placemen/capital raising (dilutionary as well) just takes longer and relies on volume traded to determine how much you can raise. And given recent volumes it would be lucky to raise $500k and would absolutely destroy the share price even lower. LDA is a dead duck and has no value or use anymore. It was a total expensive stuff up by the board. I will bet the house the raising is done to Regal as Regal is Shaws only placement client and with a 7-8% placement fee which will largely go to Regal. SPP's are usually always under subscribed and will likely only raise 50-70% of the $1m as large shareholders dont bother taking it up as there will be a limit usually $30k per holder. Short fall will likely get placed to Regal as well. So we are in for about 3-4months of Regal selling again. The board stuff ups gave them no choice unfortunatley. We should expect the strategic review to be released today or tomorrow as the press seems to have it already.
HIO Price at posting:
9.3¢ Sentiment: None Disclosure: Held
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