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.
I understand the point that that the company is nothing without cash, but was hoping for a clear run up until Charlie 1. I have supported previous cash raises and have more shares than I want riding on the actual results. Plus, like many who have been invested along time I'm still underwater. I was hoping to finally be able to do a de risking to recoup around £25k of my outlay if/when the SP reached the 2p mark. Still leaving plenty in by any reasonable standard for results.
To me the drill is 50/50 in terms of Commercial chance of success -binary. But on success a high upside for the company and the SP. If we get the 0 rather 1 of the binary outcome then I accept the SP will fall to levels not seen since 2015. In that scenario we would need a revised forward plan and a very large capital raise in terms of where our MCap would be.
To my mind, what has just been raised will not be material in preventing a big hit in terms of further dilution post a negative Charlie 1 outcome and was not actually needed in hard cash terms this side of Charlie, even if DW did want to spend a bit more on analysis or whatever.
Basically, I would have much preferred the risk of a slightly bigger hit later than the drag on the SP that I think will occur up to spud. Of course we will never know what the SP at spud would have been without the CR, and it may yet reach 2p. However, I accept that whilst I have 100% say in the running of my own business, DW calls the shots here, but just for once I wish he had held off on the safe and steady course of action.
RE: Why it is a good timne to raise money23 Jan 2020 17:04
LeMajor, ANN is the relevant announcement for the ASX regarding this halt. I'm certain there have been continuations of halts. Surely the same rules that required the halt initially would dictate the market is in exactly the same situation if DW is not in a position to issue conclusive news.
I don't know the technicalities, perhaps think of it as a brand new halt for a further 2 trading days or earlier if announcement released. This could be repeated as infinitum for situations where time is needed.
RE: Why it is a good timne to raise money23 Jan 2020 16:51
Brom, more from previous observation than anything else these trading halts seem to be for a maximum of 48 hours, ending earlier if the company releases information. The rules that require a trading halt in the first place would be pointless if the share started trading again without any update, it's now price sensitive if the CR goes ahead and as it has been mooted, price sensitive if it doesn't.
That leaves, release information before the halt expires or announce halt continues (if I've understood your point correctly)
RE: Why it is a good timne to raise money23 Jan 2020 14:50
It would be reasonable to assume we will either receive information re the cash raise before trading is due to resume on ASX or there will be a notice extending the halt. What won't happen is resumption of trading with no ANN detailing what has transpired.
Had a poster ventured an opinion 24 hours ago, with some research or precedent, that a cash raise may be incoming, what response would they have received? And I don't exclude myself from having to give that some thought.
If the 110 million were mostly buys, where did the MMs get them from to meet the orders? If they were holding them they've presumably taken a hit from yesterday's price and if they've gone short to meet all these orders then they must intend to reduce the price at some point to square the book.
More likely most trades each way took place above mid price.
MW93, regarding 'potential placing, might not happen'. Once an announcement like this has been put out it better happen for all our sakes. Just imagine the market reaction to 88e NOT being able to issue discounted shares in the run up to a major drill after resolving to do so. DW would be out of a job straight away for what would either be a huge error of judgement or a monumental f up in execution.
RE: From this SP -- triple your money!19 Jan 2020 18:53
FAFH, it's a bit like a baton passed between the two markets. By definition any significant SP change had to occur on one market only as trading hours never overlap.
In the absence of material change on fundamentals or sentiment the time honoured principle of arbitrage will come into play when any share, currency etc is traded on more than one market - arbitrageurs earn their living exploiting 'mis-matches' in pricing and this market force usually means the variation ends up being fairly insignificant. I recall in the past posters here who have claimed to have dealings on both markets.
On the theme of MCap, 16p would put us north of £1 billion. Not impossible but remember, you're not in PI territory with that sort of valuation, the hard nut investors who don't even value PMO above £1b today would need to see that value and be prepared to back it up by buying (or at least holding) 88e at that valuation.
Unless these other companies have the same number of shares in issue then you'd have to compare the MCap on anticipation and then work it back to each company's share price. Just comparing share prices is meaningless.
I'm sure the last place you will find ABH is where the company is registered....that would defeat the object of moving from one obscure jurisdiction to another. I seem to remember someone posted here within the last year details of him (as opposed to the company) becoming Monaco based.