What I'm suggesting is that here we have a struggling iron ore explorer with +165m shares on issue divided among 560 shareholders which has just done a placement @ 1c per share, and there has been no supply to meet demand with a nice premium...
Join the following pieces if the puzzle and you'll quickly begin to see with more clarity...
Potash Minerals
11/06/2015 - Placement & Appendix 3B
Potash Minerals Ltd advises that it has completed a placement to sophisticated investors of 24,278,979 ordinary shares at $0.02 each to raise $485,579.58 before costs. Funds raised from the placement will be used to assess new opportunities... The Company has now enhanced its examination of new opportunities in other areas. Potash Minerals considered the Placement as the most efficient and expedient method for raising capital given the funding certainty. Potash Minerals also considered that there were significant benefits in introducing new high net worth investors to promote a more diverse shareholder base.
Yours sincerely, Ananda Kathiravelu Chairman Potash Minerals Limited
20/07/2015 - Trading Halt
20/07/2015 - Potash Signs Option Agreement to Acquire Buddy Platform, Inc.
21/07/2015 - Buddy ready to 'pour gas on the fire' with IPO "People always talk about the brain drain. But, to the extent that I can bring some of those opportunities back to Australia and bridge US west coast innovation to the talent that's here in Australia."
21/07/2015 - Buddy set for IPO after reverse takeover deal with Australian mining company “In fact, we turned down VC offers in order to go this route, and while extremely early, we’ve been very pleased with the process,” McLauchlan said. McLauchlan pointed to 1-Page, a San Francisco recruiting technology company that became the first Silicon Valley startup to list on the ASX back in November. 1-Page has grown their share price from $0.20 on the listing to around $2.50 $5.00 today. “Their market cap exceeds $330 $650 million, and they’ve used their share price growth to be acquisitive as well as raise additional capital very affordably,” McLauchlan noted. We turned down VC offers in order to go this route, and while extremely early, we’ve been very pleased with the process... I’ve been thrilled at the unilateral support for this move,” said McLauchlan. “Every investor will have a positive return on their investment on IPO day...” He also said he expects other companies to follow Buddy’s path. “While we ultimately turned down a VC offer to pursue an ASX listing, I know several startups that are watching us very carefully as a ‘proof point,’ he said.
Radar Iron
31/07/2015 - Quarterly Activities Report
Overview The Board of Radar Iron Ltd is pleased to present its Quarterly Activities Report for the period ended 30 June 2015. No active exploration was completed during the quarter. Management’s key focus during the quarter aimed at executing the corporate strategy of minimising expenditure and to lift the suspension in trading on the Company’s shares while reviewing options to revitalise the company... The Company’s view is that while the recent conditions for iron ore explorers have been exceedingly trying, Radar has acted responsibly to conserve the existing cash while actively looking for new investment opportunities to reinvigorate the Company. We thank our shareholders for their patience and assure all stakeholders that the Board will do its utmost to increase the value of the company going forward.
06/08/2015 - Board Structure and Remuneration
Radar Iron Ltd is pleased to provide an update on the structure of the Radar Board and director remuneration. Radar is committed to minimising expenditure and to lift the suspension in trading on the Company’s shares while reviewing options to revitalise the company. The founding Managing Director, Jonathan Lea resigned his executive role May 31 and was subsequently appointed as non–executive director. All director fees are being accrued from June 2015 until such point that resumption of cash payments will have no adverse effect on the going concern basis of operations. In order to minimise cash outflows during the period to 30 June, the Directors had accrued over $127,000 in unpaid entitlements. The saving measures indicate that the Radar Board firstly, recognises the necessity to minimise expenditure... and more importantly that the Directors have faith in the potential of Radar going forward. Radar has, and is, investigating a number of options to reinvigorate the Company by introducing new projects to the company outside of the minerals sector.
26/08/2015 - Capital Raising Update
Radar Iron Ltd is pleased to announce that it has raised $495,932 in a placement managed by Armada Capital Pty Ltd. The placement involves the issue of 33,062,158 fully paid ordinary shares at $0.01, with one attaching $0.015 unsecured convertible note for every 3 shares issued. The one year notes attract interest at 1% per month payable in arrears in shares. Subject to shareholder approval they will convert at a price equal to the greater of $0.015 or a 50% discount to the price at which the Company offers investors the opportunity to subscribe for Shares in the first of any subsequent capital raising to follow this Placement.
Reasons for issue of Shares as a placement under rule 7.1A:
The Company did not offer a pro rata issue or other type of issue in which existing ordinary security holders would have been eligible to participate, as the timing of the requirement for capital did not allow for such. The Company also took the opportunity to secure a number of new investors who offered a long term commitment to the Company.
If we allow ourselves to get too distracted by the increasing number of mining/tech reverse mergers we're seeing on the ASX everyday, the very few high quality tech plays end up getting buried under such a thick layer of BS they're no longer visible to investors before the opportunity is lost.
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