I’ve participated in numerous cap raisings over the years and based on my experience, when there’s a delay, like we have here, it usually means that the company is having trouble raising funds.
The company obviously failed to raise funds after consecutive THs, and now finds itself well into the ten trading days of VS.
A few here have sugar coated the cap raising by suggesting that the delay must have something to do with a JV. Let me make this crystal clear - the company requested two THs and VS for the purpose of a “capital raising” - nothing more, nothing less.
I suppose one could say that the share price has been ‘protected’ due to the lengthy delay in the company’s attempt to raise funds, but the brokers will be aware of that fact and will take that into account.
Times are tough atm and IMO the company may very well be forced to settle on a big discount. I wish shareholders well, and hope that the price the company settles on isn’t too much of a disappointment.
ASN Price at posting:
1.8¢ Sentiment: None Disclosure: Not Held
