Ann: Yangibana Project Funding Update, page-6

"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.

The way I read it, AIP (the ATM financier) gets a 'drawndown notice' from HAS and then sells (shorts) shares into the market equivalent to what HAS wants to raise. AIP isn;t an investor actually buying shares for themselves, and I'm not sure they will necessarily have many or any private clients ready to take up new share issue during price pumps. The key to ATM share issue seems to be 'liquidity'... AIP requires enough buyers in volume to on market over the drawdown notice period to sell (short) the required shares HAS wants to issue so AIP can cover the shorts with the new issue at drawdown and make their safe commission/fees and maybe a small trading profit if they play it smart. I'm sure there are conditions in the API contract that protects API from having accept more shares than they can cover at the minimum price HAS sets for each drawdown...

Unless the stock is in a hot bull market, where day traders and hot money types pile into news releases to create the required buying liquidity, the risk is natiral buyers know any good news release will probably be getting sold into for a ATM drawdown cap raise. If HAS can't generate some sizzle and buying demand hot money types won;t be attracted, in fact are more likley to avoid knowing they are the bunnies being sold into by AIP. Great if RE prices run and RE sector becomes hot, not so much if HAS remains stone cold and with Wyloo's $150M debt due in under 2 years hanging over it's head.

The sub holder share borrow games last few days now becomes clear in this ATM context imo. Those shares are the ones to be sold into the market upon any HAS drawdown request... not really so much different to having a CR sword permanently hanging over their head. Otherwise, non-binding indicative finance packages are looking for 40% equity on total capex plus the required fees, pre-paid interest, extra contingency and working cap on top of the capex to see construction through and into cash generating full ramp up.

Meanwhile, all eyes on the US and Oz governments for grants and more cheap funding to square the circle for that 40%+ risk equity the private market is almost certainly going to balk at. Where there are bags of public money and politicians picking winners, there is always a chance of winning Socialise the Losses Lotto...GLTAH