Gateway had to get more money or risk trading insolvent.
Gateway has been looking for an acquisition, made clear in their last 12 months reporting. You can say that Gateway is a shell company till the acquisition is finalised. This is also likely the period where the share price does nothing and no volume/liquidity.
The calibre of asset that they eventually vend in will determine whether Gateway will come back to life. Last 12 months has been a lot of distressed assets in the commodity sector so hoping that they can pick up an asset that has had previous done.
I can see that there will be more raisings once a new asset is vended in as this $AU500k is likely just to see the cost of vending in the asset that the company has in mind.
GML Price at posting:
2.0¢ Sentiment: None Disclosure: Held
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