Pretty tough to predict the price but I would certainly expect it to go up quite substantially.
From the announcment we got on Monday they said they expect to secur at least 10 million from the capital raising (although I think it is safe to assume they did get 17 million+ given the fin review was the source of this number. They also said they had secured an additional 10.8 million in funding to be received evenly over 18 months through a separate equity raising.
Its this second equity raising which introduces the most uncertainty for me. We have absolutely no idea what the terms of this deal are. If it is seen as a bad deal for shareholders it will limit potential gains.
Other than that, if 21 million capital raising ended up oversubscribed I think that would be very positive for the share price, as it would give retail investors confidence seeing the big guys stump up so much cash at a hefty premium.
I can't give a specific prediction but I expect it to trade in a range or 8-10c tomorrow.
IDC Price at posting:
6.8¢ Sentiment: Buy Disclosure: Held
