Hi Bondi Dan,
Like you I find it distressing to see my share holding dilute as it has. i’m also a long-term holder and by that, I mean I made a major investment back when you did - so paid a premium price for my shares.
I have a few questions though, if I may…what should Gare Roads do?
If raising capital via share dilution is the wrong way, what is the right way to raise capital?To achieve strategic long-term growth a company seeks to funds for activities such as acquiring other brands/businesses (e.g. Matso’s), increasing efficiency and/or capacity (e.g. canning line and storage facilities).
To seek funds there is
- option 1: a loan which impacts the value of the company.
- option 2: issues more shares which impacts the share value.
Are you stating the preferred option is a loan, and if so, how will this achieve a better outcome for ‘general Joe Bloggs’ investors like you and I.
I’m living in lockdown right now, with curfews on stepping outside after 8pm, we’re permitted to be outdoors for max 1 hr per day, most small businesses have completely shut up shop, and the unemployment figures are growing with a northward trajectory similar to the way you and I wish our shares were growing. Personally, I wish I could dip in to my share investment by selling a small portion, because I lost my job at the start of this year. However, GRB is a major investment for me and the selling now would be a significant loss.
I do have faith in the GRB strategy and wonder what you feel is the right way for GRB (aka Good Drinks) to a national brand?
On another note, how do you know you are in the ‘Top 100 shareholders’?
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