I doubt they will seek another capital raising. Some of the directors have very significant holdings and may not be prepared to invest further or be diluted. ATP was profitable during FY16, reduced debt from $5m to $4m and is planning to repay more of the debt from cash flow.
Also the following quote from the Chair in the annual report released today (my emphasis).
“It is however clear that if we are to make the most of the opportunities
ahead of us, we must take innovative approaches to making our
capital structure more robust. The company has started on this process and our improved performance, coupled with our significant
footprint in Asia, opens up partnering opportunities to do this.
Having said that, I want to assure all shareholders that the Board is
acutely aware of the commitment and loyalty shown by shareholders
in the past, and we will do our best to manage an outcome which has the minimum dilutive effect on your existing investment.”
I now wonder if the strong share performance yesterday was related to ATP making progress in securing partnering opportunities. Maybe the insiders are aware of something that gives them confidence to buy.
ATP Price at posting:
4.3¢ Sentiment: Hold Disclosure: Held
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