Sydney, are you admitting that you're connected with CFC?It...

Sydney, are you admitting that you're connected with CFC?

It seems to me that there are two possibilities:
1. The bookbuild really didn't go well, so the company is looking at alternative financing methods, such as a placement to a new investor, or refinancing from the banking syndicate. I really hope the discussions with the banking syndicate are not happening because the they are threatening to appoint receivers.

2. The captial raising is likely to be abandoned because an offer is in the works. Hopefully there's not a plan to do a placement with CFC to bring them up to 19.99%. At that point, it pretty much freezes out any other potential acquirer. If CFC is to make another other, as long as the price was right, I'd be happy to accept. However, given their actions last time, I'd be worried that it will be another offer with outs for CFC, so that they can push down the offer price further or walk away later.

It seems there is a lot of unfair criticism of the board coming from some people. I agree that the board's disclosure of late hasn't been great, and the capital raising should have been undertaken earlier. You also do wonder about the reponse to the ASX query saying that nothing was happening when there were capital issues.

However, the capital raising problems come from the collapse of the share price excluding the company from bond markets, and reducing the benefit of an equity raising. The goal now is to ensure that DML has the funds to continue with business so that it is not forced into a fire sale.