RE: Hold or bail out?18 Sep 2019 09:31
I also believe this company's hopes of opening this mine are dead. With the best hope being a takeover soon before the share price slips towards zero.
I compare this situation now to a poker tournament in which you are short on chips and the blinds are coming round fast, chipping away at your dwindling stack as you wait for the best opportunity to go all in . The clock is ticking and money is being burned fast, every week that passes without a finance solution puts the company in an ever worse situation with ever decreasing leverage. The less money the company has and the closer it is to insolvency, the harder and harder it is going to be to raise any finance at all, let alone on favourable terms. All the while.... the share price will be decreasing steadily to zero increasing the likelihood of a takeover when the time is right.
Who would invest now? or a month from now? or 5 months from now when they're on their ass with nowhere to go?
We all lost money when they announced the 15p placing, but looking back - to me this was a god send as it got me off the ship without hesitation.