finance issues6 Mar 2009 20:24
That makes me nervous, I've had 3 companies that I can name where finance issues have really been an issue.
Raising the money from other companies means that finance can sometimes be called in on unfavourable terms, just look at the CMR story just now, resources but possibility that financer wants those resources/assets cheaply. Even with IVE, finance became an issue with Gasrock, this came after dilution after dilution.
I'm not saying that this will go the same way just that it makes me nervous if they need that amount of cash. I guess it would depend on the terms that are agreed in getting finance.
I would think that with raising capital through a share placing they would not be able to raise anywhere near the capital needed that way, I would think that the best bet would be to raise finance with a percentage of resources on offer.
I just hope I can get out at a small profit on results.