For those that don’t follow RNU this raise has played out in a...

For those that don’t follow RNU this raise has played out in a very similar way to a raise completed earlier this year by their BOD.

RNU started this year waiting on their final regulatory environment approval known as PEPR.

We were literally expecting it any day when out of the blue management dropped the cap raise announcement at 27c.

I have a significant position in RNU and have been fortunate to have regulate personal communication with its CEO David Christensen so on the morning of the trading halt I was really super pissed.

I called DC at 9am and managed to get him on the line. I asked him why they hell are you doing this now?
Why not hold off till the PEPR approval is granted and raise at a far less dilutive level. His answer is that whilst we expect an answer imminently, no one knows exactly how long it will take and with financial markets looking uncertain the BOD decided to capitalize on the recent SP strength to raise capital as a safety buffer.

In hindsight it turned out to be a brilliant move timing wise. Yes it killed the SP run from mid 30s down to Cap raise price of 27c within a few days of trading and then trading below raise level where it still sits.

The PEPR grant never delivered the strong rally we were all expecting and so any raise post then would have been done much lower.

Remember that it’s the BODs job to navigate the market in the best interest of the company and so taking the opportunity of a strong rally was an obvious move.

If you are a long term investor then the business will emerge stronger with a more healthy balance sheet to weather any potential turbulence we might see in coming months.

The company will have massive capex on top of the opex needs ahead of it and signing offtakes will not deliver cash in the short term. So as painful as it feels this is what the company needs at this time.

Good luck to holders.

10x