I agree that they may have done this because in the boards opinion, there did not seem to be much interest or likelihood of a big deal soon hence the money to go it alone for a while. Personally i think they should have done a smaller raising and then after good results more but who knows, the SP may have tanked by then anyway.
I think in the short term, the SP will drift down post the issue to around the low 20's, effectively reducing the MC of the new company by half of what it is now, in other words 2/3 of the new MC will be the cash backing. Good results might stop this happening but i'd be surprised if the SP gained much over the next few months. A fair bit depends on exactly who the new major shareholders are.
I sold out my position and will watch for a possibly better re-entry price. One danger is that the company will use the money faster than they have stated, seen that a number of times with other companies so important to keep a close eye on the quarterly cash figures.
This issues will likely stop a low ball offer so offers, if any over the next yr or 2, for deals would be more serious.
I just get the feeling that this isn't a 'sexy' technology so it will have to be developed much further b4 a large deal happens.
VLA Price at posting:
29.8¢ Sentiment: Sell Disclosure: Held
