Ann: Closure of non-renouncable rights issue, page-5

And that is the problem now isn't it?

The target raise was $3.26M and they raised only $636K (gross) so less expenses its even less (and $60K looks to be good enough guess) - so approx $575K raised. Puts total shares issued at just under 375M ignoring options. The shortfall means 46% of total shares issued are available for placement.....

At a 19.6% takeup, the implication is Lanstead did not participate (but only a substantial shareholder release will confirm. I guess its possible they took up 16.9% and barely any retail participated). Also means shortfall shares to be placed within 3 months to raise the $2.6M (again gross) to be able to go ahead with their drill plan --- 85% of $575K is ~$490K ... what will that drill?

Since they (at this time) raised less than $1M, as stated the company will "... stop expenditure on its interests in Mississippi and Kentucky...". Hmmm doesn't say exploration expenditure so what happens if a needs a workover. Surely they wouldn't give up WI in a (commercially) producing well?

Under the risks on the prospectus,

#2 : given the (presently) low amount raised, how much land holding will be relinquished?
#4 : at 20% participation by existing shareholders surely the signal is


I don't suppose (since I didn't see it discussed) that looking at the (audited) balance sheet end Jun 2015 and the PF BS after rights, that given the low amount raised that current liabilities barely cover current assets?

Looking for the positive but its hard to find.

In the rights prospectus, Dr. Mark Hart wrote the changes implemented over the past 18 months had
"... As a result of these initiatives, it is our view that Austin has emerged as a much stronger and more resilient Company..."

Time to change the lens. Market direction will tell. Might even go up (lol) on less dilutive effect

GLTA