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10:17
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Originally posted by 2ic:
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"At-the-Market equity financing facility for up to $50 million established with Alpha Investment Partners (“AIP”) to provide working capital funding flexibility as project financing process is advanced"... Very interesting funding alternative to traditional broker CR, never looked into it before. Very popular in US, especially the biotech sector for example, where companies are quite up front that it allows them to quickly sell shares into the market during price pumps on good results without delays organising broker CR that sees the share price fall as profit takers and broker clients front-run the CR selling down in advance and then getting a further CR discount.
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These have now been used a few times in Australia. E25 also did one a while back, and it was very useful for their Board. Benefits are significant to a Board because they do not have to deal with a broker who is manipulating the price prior to and after any raise, plus taking their 6% plus options pound of flesh. More of these finance deals would see traditional brokers getting squeezed out of deals more and more and I personally am all for that.
(20min delay)