Fair comment roygbiv and the sum obtained from the rights issue means UXA must get more cash from somewhere by years end.
The only quick answer is to sell all the shares from the rights issue at 1.5c to an investor. Second is to sell shares in a placing at a deeply discounted price. Third is to borrow money against the GAA Wireline 100% owned subsidiary - could probably borrow $2 million at reasonable interest rates. Fourth, sell a further 31% interest in the Arnhem Land JV with RIL Australia; either to RIL or another party, leaving UXA with 20%. UXA costs would dramatically reduce and a cash sum would help. Fifth, sell part of GAA Wireline or in the longer term float part of the company on the ASX. Sixth, maybe a takeover bid will arrive, though this is likely to be friendly and priced on the low side.
UXA Price at posting:
1.4¢ Sentiment: None Disclosure: Held
