Looking at the business case, the 20m shares represents less than 1% of current share issue (if my early morning calculations without the aid of coffee are correct lol), the gains that could come from the acquisition of the Trinity field will hopefully be many times 1%.
As a long term holder I can accept DL's move here, the returns from Trinity will start to be reaped next year, but in the meantime its another producing asset for the company.
I take your point about the misleading 'no dilution'statement however I think you're being overly pessimistic and critical. I think this placing puts a floor on the price because institutions are not known for their charitable acts. They are in it for the money just as I am. They won't buy 200m shares unless they believe there is a right good chance of making a good profit for their own investors. It is therefore a vote of confidence in the future of LGO.
With a company like this circumstances change so quickly .You can`t turn down good investments because you stated no further dilutions based on the the facts at the time.You seem to lack business experience not to understand this.We are buying assets with the proceeds not as someone else said using it for everyday expenses.I`ve taken the opportunity to increase my holding.
Its a cracking deal. In a years time just the asset will be worth 5 times more than we are paying for it. This is reflected in the high placing price. Fwi this is an unexpected opportunity to buy sub 4p. I'd grab it with both hands
Also the reported statement of fewer RNS appears to have gone by the board. What other statements will be found to be economic with the truth to say the least. Another bout of verbal/written economics will show up soon lets hope they have not made mistakes with output figures.
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