How it should be done17 Jun 2021 22:43
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Professionals v Amateurs
'Cove was listed on the Alternative Investment Market of the London Stock Exchange. Over a period of seventeen months, between June 2009 and November 2010, the company raised a total of £182 million through four placings. Each placing was done at a significant higher market capitalisation than the previous one:
June 2009: £4 million at £0.12 per share
September 2009: £42 million at £0.20 per share
March 2010: £26 million at £0.40 per share
November 2010: £110 million at £0.76 per share
The funds were mostly used to acquire assets and then to keep up with the cost allotment of the fast-paced and expensive drilling campaign offshore Mozambique. A feature of the Cove business model was that it was sufficiently funded through all stages of its development to support the dynamic and active exploration programmes in all its operations and was also adequately funded to make strategic acquisitions.