I feel like I'm always playing devil's advocate here but
1. Did our KCF investors take up any money? If they bought it at over 8$ surely they must be keen at 1.73. 2. Why is there no forecast use of funds? I'm talking specific dollars here. Right now we are left to our imagination as to how much is spent on each cost item they've identified. Even a small table with $ ranges would be fine. It points to me that they don't really know or can't forecast accurately. Also doesn't tell us how much bell potter was paid. 3. If there was an offtake imminent why wouldn't they raise after the offtake announcement at a better price? Especially given institutional demand exceeded shares available. I don't buy the excuse they need more inventory to secure the offtake. By my calcs there should be about 30m worth of inventory at Sept quarter end. 4. No indication that senior managers (outside the board) will be buying in as part of the raise. Maybe they are comfortable earning their free performance shares every year and don't want any further financial commitment. CEO has not acquired any on market or as part of raising. 5. IGandel is still being diluted in this raise. 4$m out of 30m is lower than his proportional ownership of the company.
ASM Price at posting:
$1.77 Sentiment: Hold Disclosure: Held
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