ROS 0.00% 35.0¢ red october resources limited

what a farce, page-6

  1. 1,091 Posts.
    Yes Gibba I agree that deals can fall through due to market conditions.

    However, with ROS we had a company with a Market Cap of Less than $10M, trying to put together deals worth in excess of $100M. Anyone could see that this had the potential to dilute original holders significantly.

    Seondly, all this happened just a couple of months after their listing. Management should have been fully aware of ASX listing rules in relation to capital raisings so close to their listing.

    Thirdyly, management should have known that one project, let alone two was an ambitious task and that financing would be a major issue (whether debt or equity), let alone the operational aspects for a company working on limited staff numbers.

    Fourthly, on the ROS home page it states

    "Red October Resources Limited is an Australian-based exploration company established primarily to acquire, explore, evaluate and exploit mineral resource projects including nickel and non-iron ore minerals at the Pardoo Project located in the Pilbara region of Western Australia"

    Moving so far away from their original aim always had the potential to annoy shareholders who bought into the float. IMO not many would be willing to stump up even more cash so soon after listing had the CR proceeded.

    Finally, todays announcement does not provide any time frame for re-listing or speak of what the company will do next. At the very least management should have marked the announcement as "price sensitive" IMO.


 
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Currently unlisted public company.

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