I'm surprised with this announcement, particularly since the recent rights issue was sufficient to complete the BFS plus a bit leftover. SFG did indicate the BFS was due for completion in the third quarter of 2016.
But since we know that there is a capital raising intention I'm always comforted by the fact that the Chairman has by far the greatest number of shares, and in recent years he has put a lot of cash into the company. He obviously wants the best outcome for SFG, and us minnows benefit from that arrangement.
I agree that there's no point to spend hours wondering what the deal might be, but I'd love it if it were a private placement to a large Australian corporate (eg Wesfarmers) who may gain partial distribution rights or similar. If it was done at a premium to the share price that would be even better! But that's probably asking too much.
By the way if it were a very large placement, eg 25% of the company, that simply needs shareholder approval, and guess which way the Chairman would vote! And I'd be voting the same way!
You can only hope.
SFG Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
