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l-a I am unsure what lessons are to be learnt apart from understanding that CRs can come at any time and that CEO's will never telegraph them to the market. DW definitely did not say "Never" at the London Presentation and that ASX & AIM are different regularity regimes. I have pointed out the issue of the twin markets in respect of Primary Bid and the fact that in the example I saw the discount 18% was based on that days mid- price (not VWAP) and did not seem to have any limitations on how many shares the sophs could gobble up.
As I suggested earlier if you believe that more information about the CR could(should) have been given and that DW should have offered to private investors then certainly it is reasonable for you to convey those thoughts to the company, I am sure he will reply.
Certainly I have knowledge now about Primary Bid that I did not have before today.
brom - "Some people are never appy. :-)". If you believe there are absolutely no lessons to be learned from this experience then fine. I will send an email to DW to give some feedback from my perspective though I am not holding my breath.
10:12 there are distinct differences between AIM & ASX in the application of trading halts, it comes with territory of being invested in a dual listed company, DW can do nothing about that, in retrospect seemed that AIM reacted in a relatively mature way.
Always will be issues, if Charlie-1 produces the goods which market does the Company tell first ASX or AIM??
Will PMO insist London first?
How will ASX / Chi-X take that??
Some people are never appy. :-)
10:12 just had a look at an example of Primary Bid, done at 18% discount on that days mid-price so sure that plenty of flippers got involved, in the example I looked at within a month the SP had dropped by ~40%.
By the way offered to sophisticated investors as well and I could see no limitation on how much they could take.
Seems no magic bullets when companies want funding.
AIM4 - yes you are right. AST launched on PB after markets closed on Friday and deadline was Sunday. Markets reopened on Monday morning as usual. Very efficient.
What I didn't like with the 88e dilution was the uncertainty created by the RNS of 22 January where we had no idea about the amount of the placing or the likely discount. All we got was:
"88 Energy Limited (the "Company") announces that its shares have been placed in a trading halt on the Australian Securities Exchange ("ASX") pending the release of an announcement in relation to a potential capital raising.
The trading halt will remain until the earlier of an announcement to the market regarding the above or the opening of trade on ASX on 24 January 2020 and the shares in the Company will continue to trade on AIM during this period."
The London market was effectively hung out to dry hence the fluctuation in SP on the 22nd. Pretty unsatisfactory from a London PIs point of view.
Yes Brom. Think it's only for UK market. Certainly the one I did was only AIM listed. They are done when market is closed for obvious reasons. Leb mentioned one done over two days. I believe that was launched after Friday close and ran till Sunday night. Others are closed before the market reopens if done midweek.
LeM, the announcement gave me the impression the investors were the usual collection of flippers. Agreed a genuine KNOWN investor wanting a big slice to hold is a different matter, may justify a premium even.
09:33 so if that quick does that mean that one market or the other would be excluded ?
l-a 09:23 so would those shares be at a discount to encourage "buys" and would we see the same behaviour we have seen in previous shareholder offers and rights issues, deal is done now.
If you feel there could be an advantage for the company and shareholders might be worth suggesting to DW for future reference.
Aim4, We do not know the back story. Suppose a II came along with $30m to invest once we have proven commerciality, but said "I'll take a punt and put 10% of it into your coffers now, providing you give me 15% discount". The thing is, if it is unsolicited, the investor is less likely to be a short term turnaround merchant.
Guesswork, yes, but plausible.
Leb-a, had there been a Primary Bid offer at 1.1p, I would have been very tempted - and I say that as someone who has stuck by a decision not to buy any more since late 2018.
For anyone who has not used PB, it's quick and clean and when I used it, the raise was all done and closed a few hours after receiving the invitation (invite issued usually just after market close)
LeM, very true but if the principle of accepting new money at a discount on every rise to invest in new projects is the default position, few of us are ever going to get out of here with a profit!
LeM - As I say the company could have used Primary Bid to raise the funds. This is efficient and quick - I have used it before with very early deadlines of 2 days just like this.
Leb, buying shares on the open market does not put one red cent into the company cofferd.
DW could have used Primary Bid - I am sure a lot of PIs would have warmly embraced the chance to take shares at 1.1p.
As there was an unsolicited approach DW could have just said "buy in the open market"
The last time we were given the chance to take part in fundraising, most turned it down and DW had to do a placing anyway.
37pits,
"possible company thinks us LTH'ers are rabble"
Based on the audio from the London Presentation, that has been confirmed. When the issue was raised Dave quickly attempted to shut it down after looking around the room.
08:40 Last two shareholder issues have been very long winded, seen SP drop/ stall over a relatively long period and just cause general angst.
share holder plan 2015
Rights Issue 2018
Find the dates in process and see what happened to SP as a result, many who bought at a discount just sold their existing shares as fast as they could to finance the shares they thought they would be buying at a discount :-))
Look at this raise, fast and efficient even if a discount had to be given.
It's impossible to do a rights issue for such a raise. Way too costly and no time. This was a temporary glitch in the overall strategy of the forthcoming drill.
When the news arrives that final permit has been granted and rig on the move, this fund raise will be history.
but disappointed shares were only available to sophisticated investors - possible company thinks us LTH'ers are rabble