It would be a tragedy for GXY to revive the Hong Kong listing because the purpose of the aborted attempt earlier in the year was to sell shares and dilute the already shareholder's holding.
Even though the authority to dilute further this year expired in August, a further attempt to raise more capital by a renewed HK listing would give a signal to the market that GXY needed more cash and that the Jiangsu carbonate plant would not likely be capable of making a significant profit to finance further development.
The April cap raise increased the company's shares by nearly 50% and saw the SP drop from $1.40 to sub the CR price of $1.10.
Anyway, shareholders would have to reapprove the HK listing if it involved more than a 15% cap raise. (the company can sell 15% P/A without share holder approval.)
It is only a matter of weeks now until the results of the Carbonate plant are known which will give the market a good idea of profitability.
Cheers
Moorookamick
GXY Price at posting:
29.3¢ Sentiment: None Disclosure: Not Held
