You would like to think this is the last capital raising SXY will ever need, if they use the money as per the investor presentation. It will certainly grow the company with the revenue flowing in from a significant number of wells being brought into production. The downside is the dilution and the possibility the money might be wasted on administration expenses, salaries etc. The SP could also be suppressed for a period of time to around the level of the issue price, or it could take off with future growth being factored in. Ian Davies is certainly moving things along, but at a cost to current shareholders, with the market unimpressed today, perhaps- like me- still trying to take it all in.
SXY Price at posting:
38.3¢ Sentiment: Hold Disclosure: Held
