Would think that they would need a new nomad in London before they could have a placement there cowboy! You do have a point though they may do a placement if they get one.
However it seems to me they are doing everything they can to avoid one and they said they had enough money to see them through this quarter and i would hope we get a Finance decision before then.
Covered this on advfn gip board in answer to questions from poster Joan of Arc.
Joan of Arc they are still trading in Australia and Germany as you point out. In Australia they had to provide a explanation of why they should be allowed to continue trading and did so.
The reply says "1.In the absence of additional capital being raised, the company will only have sufficient funds to fund its operations for this quarter. The company is actively seeking additional funding from a variety of sources to fund working capital fro the period up to implement ion of the Abu Dabbab project and directors have implemented measures to reduce cash outflows in order that Gippsland will have sufficient cash to fund its activities well beyond the end of March 2009."
So basically a worst case scenario is they run out of money end of March. That is assuming they can not raise any money and do not put any more in themselves. However i would expect an answer from the German banks before that.
"The Company is advised that the Abu Dabbab legal due diligence being undertaken on behalf of the Banks by City of London lawyers Milbank, Tweed, Hadley, & McCloy LLP is nearing completion." And "As a result of the regular contact with the Banks and the due diligence undertaken to date, the Directors believe that the Banks have maintained a positive attitude towards the Project in spite of the recent international financial turmoil."
If they did not get an answer before that i would expect them to find some money from somewhere to hold on for a bit longer till they do. The directors at least think it is worth a gamble that the answer will be yes. If it is no you lose your money if it is yes your shares go up by a multiple over days or weeks then climb even more as news spreads about the project.
As for the brokers i would guess they had a falling out after the last placement as JT did not get all the money he wanted and the share price slumped. Also the share dumps started after that (the brokers getting rid of shares?).
"It is largely unknown what is holding up financing at Abu Dabbab but Bridle told HighGrade that with a market capitalisation of about $US11 million, Gippsland would have its work cut out raising the $US140 capital expenditure the project demands. The company is trying to raise 80% of its finance through debt and the remainder through equity. Another unknown is why HC Starck has not stepped in with financial assistance given its need to lock-up future supply." this is worrying but is in a PR piece for Commerce from a broker about to wave goodbye to Gippsland. As Gippsland had been talking to another broker for weeks about a new nomad hardly surprising though still out of order. What does it amount to "It largely unknown what is holding up financing".
Boil it down and what do you have. We already know from Transmeta/Confidential that they did have a partner in the wings that would also have technical input and a big say that was going to take a chunk of the business. Put that together with the German government support and i would think it has to be H C Starck. I do not see any evidence yet that they will not step in and cover all or nearly all of the equity side. As for the debt component that is down to the German banks and Government and i do not see any evidence that they have said no yet.
Not a lot to be cheerful about at the moment as you say Joan of Arc but it is not all over yet.
Robert
AR1 Price at posting:
4.6¢ Sentiment: Hold Disclosure: Held
(20min delay)