seem to misunderstand how an equity line facility usually works. They are worried about supply from dilution on Mar 4th.
Typically the way these work is that the company gives notice of draw down and then the financier spends the next 3-5 days shorting the stock - this is not to drive the price down - just to manage the risk. They are usually as gentle as they can be as they get the 7% discount. They are not usually in it for the capital gain after and they usually have a number of these facilities that can be drawn at any time so they are not interested in a long term hold. They are facilitators. When Range was just looking like breaking out of the 8-9p it got stuck for a week or 2 while they went through the notice period for the first GBP3m and shorted so when they finally got allocated it was mostly filling in a short ie no extra supply and the SP was free to move up.
The same has just happened - obviously Range have drawn GBP5m and the SP stopped right about the time they would have been giving notice and setting the VWAP.
Range did pretty well to include a price trigger to break so the shorters don't go mad or they might be left short and have no stock.
Sooo it is unlikely that there will be some avalanche of selling on Mar 4th - more likely they have already been sold. I know the heads from the options I exercised have already been sold so no new supply there either.
A stock that stays around its highs with this much selling in the last 2 weeks is just busting to go higher I reckon.
I am going to guess 23-28p range within 3 weeks - and I will sell some more and keep some for the drill results hopefully.
RRS Price at posting:
23.5¢ Sentiment: Hold Disclosure: Held
