Capital raising today in my view is very disappointing.
2 big issues. (1) why do they need the money ? They should be getting about at least $400K per month from the current sales. As others have said, watch the quarterly report to see how they are tracking.
(2) Why 11.5 cents. It may be a good sign that these investors are in but at a 1.5 cent discount and with the share price history of RBM this year they are getting a bargain. Why not let shareholders who got in from late Jan'07 onwards the chance to get some at 11.5 also. The simple fact is it is diluting to the current shares on issue.
In time this will get forgotten by the market but short term makes it hard to get over 15 cents as particularly there is a question mark over why the current stockpile sales plus the recent raising of $480K be enough.
A worrying step in my view and I have been mostly supportive of them in the past.
Flipper
RBM
redbank mines limited
