RE: Now add shareholder value sanjay!15 May 2025 12:30
The price sucks, no doubt, but fwiw, the deal, as per the RNS, did go in chunks to very solid hands and then of course, mercifully nothing to retail spiv brokers who would inevitably f-up trading for weeks to come. Instead, I have spoken to a couple of those solid hands and their participation reinforces the message in the RNS; namely that the vast majority of these funds are going into capital spending in Albania and to further the process of funding beachheads in Chile, Senegal (kind of small 'b' bridge financing) and possibly elsewhere. Finally, while its absolutely on the Company for many of the legacy issues that have put the share price in the single digits in the first place, 4p is basically the price we started at before the recent rally on the back of the Senegal update RNS, which by the way, those same solid hands confirmed was useful in convincing them that the partner in Senegal is a serious one and thus to participate in this raise.
In summary then, this is substantial enough of a raise to make a difference in advancing the production cause, but not so much to be too dilutive, done at a miserable price, but with enough solid support from wealthy holders/family offices to at least reassure current shareholders that the market in the shares going forward will not be adversely impacted by attempted flipping and then, for me anyway, provide reasonable hope that in fact, the interest generated by this raise may help us recapture a material (up to half or more?) portion of our losses over the near-term as we await more substantial updates from the coal face. Oh, and a final, small 'positive' to note: unlike what we might have expected, the small call option sweetener in the deal was not struck at the 4p placement price, but at over 3x that level, at 13p, a tiny imbedded vote of confidence from the investor group to my mind at least.
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