@Motors - I agree that it is likely, but not certain, that there will be a capital raise before June 2024. Whilst we could hypothesise about what price the capital raise would be done at if done today, that would be pointless as it is very unlikely that a capital raise will be done today or before the investor memorandum comes out. Depending on the interest and stage of any negotiations with potential partners, a capital raise may not be required, but a small one is a real possibility.
What we don't know is when they will raise, how much they will want to raise and at what price. If the information memorandum is positive, which the drill results to date indicate, there will be a positive impact on price and even with a discount to the price at the time of the capital raise, the capital raise price could be comfortably above current levels. As much as anything, the release of the information memorandum will remove the doubt of further drilling or other delays and we will clearly be in the partner negotiation stage which will also be positive.
For anyone that has ever complained about not being invited to participate in a private placement and would consider picking up some HIO shares in a private placement, I would suggest that you contact Hawsons to express your interest in doing so. The company doing a capital raise will not know of your interest unless you let them know. I note that to participate in a private placement you will need to be a sophisticated investor, meaning pre tax income of $250,0000 for the last two years or net assets of $2.5 million (which can include the family home). For those that don't meet that criteria, it is common that a private placement is done with a share purchase plan which would be offered to existing shareholders and I hope that is the path they go down if they need to do a small capital raise.
The question for those looking to invest is whether you are better off locking in some shares at the current price, or taking the risk that capital raise price will be lower than current prices. My thoughts are that after the release of the investor memorandum that even with a discount, any capital raise is likely to be higher than the current prices - but do your own research and form your own opinion. For me, removing the doubt for further delays and having a a lot of new and current information released in the investor memorandum will be a positive for the company and the share price.
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