Personally i'm a bit surprised by the size of the undersubscription. The last TOP 20 holding percentage was around 61% of issued capital, a lot the TOP clearly haven't take up their rights.
Assuming all the directors and management took up their rights and still hold around 31 million shares between them, this leaves about 4 million shares taken up by all remaining shareholders - average support at best.
the above is based on oldish information, I asked for the company to publish a TOP 20 about two months ago but was informed they would publish one following this pending capital raising.
Although the size of the undersubscription is a surprise my positive sentiment remains the same, the Quarterly report stated "While final bidding approvals are not yet complete both Essar and CGE are
confident of obtaining approved UCG blocks". I hope these comments are the company saying something by not actually saying something ie. they are not words used prior to this quarterly. The company has many possibilities in front of it to build shareholder value - we just need something to stick.
Chris, I hope you had enough in the piggy bank to take up your entitlement - if the SP doesn't move on the merits of the company I agree it will at least get a pumping from our new shareholders. 7 cents should be a pretty floor for the SP in the future.
Share Guru,
L&M have a lot of coal ground and are well overdue to generate something of substance, maybe a capable partner is what they require, Although I think it was only about 6 months ago LME and LMP merged to focus on gasification.
I believe Ergo from North America and Solid Energy have also partnered and are having success trailing initial stages of UCG in the north Island of NZ.
I Guess NZ would just provide another possible project for CGV.
It's been an ugly week or two for ASX resources generally i think. fingers crossed for a turn around.
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