Dunno about SHN, looks like they are looking to issue another...

Dunno about SHN, looks like they are looking to issue another 75mill shares plus the 20mill of options still unexercised, which, at current share price gives the stock a marketcap of roughly $72mill. Then they have stated that commissioning will cost $22.7mill and $11.5mill working capital up to commissioning. Looks like they are issuing a convertible note, which will maybe cater for the extra money shortfall (it appears that SHN has very little cash), however, this is a cost as well that needs to be factored in.

SHN had to halt as, with the stock currently at 18c and them trying to issue stock at 20c, this presents a fair anomoly. This presents a reasonable risk to me, although the issue is underwritten.

Back to marketcap, taking the marketcap into consideration, maybe SHN is good value (personally I dont think so, but thats just an opinion) but compare its fortunes and prospects to a stock like IGO and there is no comparison in my mind. IGOs marketcap isnt that much more than SHNs.

I think SHN will probably rise short-term depending on the underwriters ambitions, however alot has to go right for SHN to do well. Happy to hear others opinions.

Regards