AEB 0.00% 0.9¢ affinity energy and health limited

Ann: Algae.Tec Secures Funding to Fast Track Developments, page-21

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  1. 1,999 Posts.
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    With no details on a deal like this I'd be looking for the door, but with AEB's track record I'd be frantically making a desperate attempt to smash through it.

    I have the smallest of suspicions that just maybe, maybe, they may expect to actually make some money from the marijuana, but given the nature of the fund raising I don't expect shareholders will see any profits.

    I see two scenarios. In one, things are looking positive. In this case, one must ask why they would raisr capital at the current share price rather than informing the market, raising the price, and getting a much bigger deal. Forum rules prevent me from going into further detail, but you can make your own analysis on this.

    In the other, things are not looking rosey, which would explain raising capital at a time when it was desperately needed (without it the company would have ceased to exist about now, so they had no choice) without giving out information. It is extremely unusual to raise capital, especially a large amount, without a lot of peachy information being thrown at shareholders.

    Obviously if things are not good, no one wins (apart from management getting their huge salaries as per usual). But, even in the case of the marijuana going well, I can't see shareholders being rewarded, if the company is being split up and regular shareholders are not taking part in this deal. I would be running away, but I suppose I would have run away at any point since it was around 40c, and people holding now must have their own strange reasons for sticking around through all of what we've seen, so this is probably unlikely to rattle them.
 
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