I know its not bad news in itself but i think it has been seen as that way Also the terms seem a bit keen to some, Can't see any other reason for drop in SP. Still believe we will do well here longer term and will buy more if we continue to fall lower ,but will now trade also given the chance. When it moves its by quite a few %
They didn't give the loan detail out because it isn't bad news. It is innovative financing to provide the company the opportunity to negotiate from a better position. If they get it's on board it'll eliminate some of the volatility, either way though I believe in the leadership and am sure the future holds a bright future (as for now it is a different story).
Have made my mind up to trade this share and not hold anymore as its too unpredictable. Bought in at 6.0,six months ago, should have got out at 13 but waited for resultsof Nervesa. Why Sound did not just give the results of well test first ,then details of loan days later in another RNS seems odd to me. Give out the good news first like politicians do and slip the other out later. IMHO
Maybe I am naïve but I thought the fact that SOU were able to borrow the working capital that they no doubt need was a good sign, the fact that financial companies were confident of getting their money back made me think that I had invested well...and then it crashed!!! Must say I'm a bit dumbfounded that what appeared to be a successful RNS had such a negative reaction...I feel it will settle down a bit higher that this but who knows.
What is the big deal that they made need cash. All companies need cash (especially early stage or exploratory), it may result in some dilution, but it may not. Either way the BOD will make a decision in the best interests of the company at the specific time. It is not a secret and does not need conspiracy theories.
The story is as clear as day.... We need cash, to get cash we need to do deals, getting deals sorted takes time... RBL will take 5/6months to sort... hence why people are leaving.... they will be back later, SOU isn't going under... just into a suspended animation for a bit... think of Han Solo at Jabba's Palace...
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