Because we are quite clearly low on cash. Think of it this way, if ceasium if genuinely as hot as we think, surely the board could have negotiated an off market sale of 25% of our PWM position. That would have negated the need for a cap raise. Our share price still might be down a bit, but nowhere near where we are right now. If people are going to say it’s too illiquid to sell, then it might as well be worthless to us if it can’t ever be monetised. Personally I think this is a weak excuse.
Anyone would have to be a bit of a muppet if they would subsequently criticise the board for offloading a quarter (or even half) of the PWM position after a several hundred percent gain. I’m almost certain that most shareholders would see that as preferable to the raise that we just did.
We also need to keep in mind that there’s every chance that PWM could track downwards from here, particularly if some of their new shareholders are buying the rumour, selling the fact for the upcoming MRE. Would holders here be happy if PWM tracked back to say 50c a share, and WR1 failed to take any profit from PWM’s recent stellar run? I know I wouldn’t be happy with that, considering the alternative has been to destroy the WR1 SP and dilute shareholders.
WR1 Price at posting:
27.5¢ Sentiment: Hold Disclosure: Held
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