Hi Manny
I agree that there is some movement upwards from the low set on the 28 Apr of 0.35 so far reaching a recent high of 0.45.
This rise made me start investigating to try to sort out possible causes for this so far significant increase from the 0.35 low ( that's a 28.5% increase in 9 TD's, that's not to be sneeze at)
I think that the capital call agreement with LDA is my prime suspect. Here is what I found out so far.
On 10 Jan "Capital call notice under agreement with LDA capital"
The Company is obligated to raise a minimum of $15,000,000 (AUD) during 2023.
Available funding under agreement of $27,913,239
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The issue price for the capital call shares will be 91.5% of the higher of the average daily
VWAP of shares over the pricing period (subject to any applicable adjustments) and the
minimum price notified to LDA Capital by the Company.
Next from 28 April Quarterly activities report.
Subsequent to the quarter end, A$12,232,543 was received from LDA Capital upon the issue of 20,756,540
shares.
That is 59 cent per share. The available funds were $27,913,239 minus $12,232,543 taken up last quarter leaves $15,680,696 available for another capital call before the end of the year. I would expect that BRN will take up the option as $15m would fund the current cash burn rate of $6m for Q1 and Q2 of 2024.
If a capital call was made when the SP is lets say VWAP 40 cents the .915% would reap LDA capital shares at 36.6 cents and on $15 would be allocated a total of 41m shares.
If somehow the SP rose to 50 cents and a capital call was made the $15m would reap for LDA at 45.75 cents 32.8m shares
There is a big difference between 41m shares (SP 36.6c) and 32.8m shares (SP 45.75c) for the $15m. Remember the last capital call was at SP 59c for $12.2M
So is it possible that some kind of concerted effort is being made to raise the SP ahead of a capital call?
Have a look at this hourly chart covering the last 11 trading days and draw your own conclusions.
DYOR
Cheers Lies
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