RE: RI thoughts22 Nov 2017 21:43
Evening all.
Thank you Eck for the even-handed appraisal, TLC7 for your positive views and Glen for the link.
I have one query from the RI RNS that you guys may like to comment upon or raise at the AGM. The 2nd fundraising is described as 'a combination of equity, debt and vendor (equipment lease) finance'. If the equity part is as placing of shares or convertible bonds, then it is very likely to remain in 'sticky hands' and will IMO likely have little effect on the SP. If it includes any element of further RI or open issue, and/or if the financiers play 'hard-ball' for a significant discount, then the SP could be depressed to more like 20p, which makes the current RI less attractive. Such was the case IMO for SXX in their first fund raise which ~halved their SP. No complaints as I sold before at ~50p and have since bought back in at ~25p! OK I know the two are not really comparable, but for the above reasons, some clarity as to the company's 'equity' intentions in the 2nd fund raise would be desirable for PIs.
Oh dear! I'm starting to sound a bit like a certain other poster!!! Despite this I am inclined towards taking up the RI offer. Please excuse the dubious financial logic of a 'rockhead', but your comments would be appreciated as would a query to the AGM that I can't attend. I have donned my hard-hat! LoL!
Regards to all, R.