...re - a possible rights issue, hyopthetically, what many venture capitalists are continuing to throw up is a rights issue with a free option for every eg. 3 or 4 shares subscribed. The company has flagged future dilution either through the current acquisition or a future acquisition.
For instance, they could perhaps drag from the market $3.0m at 1.5c with a free option able to be exercised at 2.5c which may agitiate the speculative end of the market on a concerted drilling campaign. At 1.8c, the EV would be minimal and the added cash may de-risk her in the short term which possibly may make the options exerciseable.
This is a very cynical hypothetical scenario, but it is becoming increasingly common so as to provide the opportunity for the large long termers to average down and trade the volatility either on speculation or any drilling success.
I've added THR again to one my watchlists so thanks for the heads up.
THR Price at posting:
1.8¢ Sentiment: None Disclosure: Not Held
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