These sorts of placements are good for several reasons...
1. Company needs cash...they do not get cash if these people have to buy on market.
2. Major supporting blocks are what we want...and you get this when you arrange placements at times when you are not desperate.
3. Credibility of what they are doing gets a big tick with such placements...instantly providing a sentiment safety net based on the assumptions of significant due dilligence from those taking the placements.
4. Future support is facilitated by such placements...especially when issued just prior to a major news event. Paying yet another "ferryman" before we get to the other side.
In my view, today's news is exceptional and bodes well for near term news.
But will we get it pre-xmas as per Smyth's "xmas present" comment.
Trading activity tells me it is a done deal...corporate activity tells me it is a done deal...but who really knows?
Cheers!
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
