Although I did not participate in it the placement it was a good idea and done at very respectable price of 10 cents, which is great considering the stock was only 10.5 bid (bugger all discount really) Plough etc need to read between the lines: the announcement said welcome new insto shareholders - institutions always need to get set with a placement before they push a stock up because otherwise they couldn't get a big enough holding if they had to buy on mkt and therefore wouldn't bother with small stocks (even more the case with AJX given its low liquidity). Also having a placement now will improve liquidity which will in turn make it more attractive to other bigger investors & don't forget that it means these new investors have done their DD and like AJX. Last of all by looking at the recent 3B the extra cash in the tin will be very handy and means the company can push harder for better terms on any upcoming licence agreements. All in All the dilution is minimal and given the positives i'm happy with it cos its all going to add value to my holding - get on board I reckon this stock is going to pop!
AJX Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
