re: Ann: SXX: Ceasing to be a substantial hol... This announcement follows on nicely from my previous posting where I detailed a cash flow projection which concluded AOK has no real cash flow problems.
AOK has sold the holding in another publicly listed company to finance the drilling program for the March Qtr.
The sale of these securities will wipe out any projected cash flow deficit through to the end of March.
If they can put 3 more wells down before the end of march they should be firmly cash flow positive.
What I like about this announcement is that AOK is not planning a major capital raising. If it was it would not be bothered with selling their investment. It is really petty cash. But petty cash is all they need to get through the Qtr.
Then the question is whether to farm out wells to interested parties for a cash injection and some royalties, or have a small placement to fund June Qtr.
It will all depend on whether the share price moves. Any capital raising at these level is too cheap given their recent (and imminent) successes .
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