gindalbie sucks! shareholders ignored., page-2

Hi I was frustrated too with the approach by the company and shot of an email to let them know what I thought.

Here is Michael Weir's response.

PS I'm not bailing as $1.40 will look very cheap come 12 months tim IMO.


Hello

Thank you for your email and we certainly thank you for your support as a shareholder. In relation your email, Id like to make a few points on the equity raising and its structure :
There is still good support in the global equity markets for large, long-life projects such as Karara
An equity funding strategy such as this allows Gindalbie to significantly strengthen its shareholder base by adding a large number of quality, supportive, long-term investors to its register
We believe this will lead to a re-weighting of the Gindalbie register, providing a stronger institutional shareholding which is more in line with the companys size and position as an ASX-200 company.
Gindalbie has never undertaken an institutional placement for the development of the Karara Project. As such, our share registry structure is unbalanced for a company of our size. A company of our size should have in the order of 30% of its share register held by institutions, not the <15% we currently have.

We have a large retail shareholder base, but unfortunately not all are long-term loyal shareholders such as yourself. Many are traders.

Our partner Ansteel has posted a huge vote of confidence in both Karara and Gindalbie by subscribing to the share placement and contributing their share of the additional equity to the project. This means Ansteel will retain their existing stakes in Karara and Gindalbie. We are delighted by this because not only are they fantastic partners and shareholders, but it shows the huge regard in which they hold their investment in Karara and Gindalbie. Ansteel are very important to the long term success of this project.

Recent evidence shows that an equity raising of this size would not have been achievable through other structures and with only existing shareholders.

While we accept you may be disappointed with the structure, we have tried to balance the needs of all shareholders and the companys long-term future.

We still need your support as a shareholder. The approvals for the Security Arrangements announced last week and the equity raising are all interconditional. If one part does not go ahead, none of it goes ahead (including the SPP). This will obviously have potentially grave consequences for the timely development of the Karara Project.

Best regards,

Michael Weir