I agree John that perhaps some investors may have got...

First 31 Last

Share
Profile

Follow
retrac

3,054 Posts.

13

20/11/18

10:36

Post #: 36568191
Share

Originally posted by JID ↑

Morning Guys,

Something has gone badly wrong during this CR round in the final process ... or not, depending upon your conspiracy viewpoint.

For me, assuming Directors wanted to get the best result for shareholders, a rights issue would have likely resulted in a lower discount rate based on the momentum that ADT had going into the CR and the just announced receipt of the tenement extensions. Additionally, it would have allowed existing shareholders to participate.

I can't shake the feeling that now it is confirmed that ADT are sitting on a potentially amazing project that mates were given favourable treatment.

For example, I know for a fact that there were Sprott clients lined up with material funds ready to invest (in my case I was waiting with US$200k) for a placement who would have accepted a lessor discount rate than what has transpired.

This view is reinforced by the fact that ADT were sitting on A$6.5m prior to the CR and thus were not negotiating from an inferior position - not to the extent of accepting a 17% discount to the 5 Day VWAP.

It will be interesting the reaction from current shareholders and the market to this materially disappointing outcome.

Silver lining is that those not set prior to the cap raise and were anticipating having to pay up are likely to now have an opportunity to get shares at lower prices than would otherwise be the case.

Cheers
john

Expand

I agree John that perhaps some investors may have got preferential treatment here at a fair discount to the 5 day VWAP but this is often the case in this end of town as Im sure that you are aware. Fact is now that people like yourself with $200 K sitting on the sidelines to possibly invest will have to buy on market, disappointing for yourself but not a bad thing for shareholders in general.

We know more good news is on the way plus all the regional work that is going on so investors like yourself can't afford to sit and wait imo.

This is an amazing discovery with potentially so much more to come so this CR will be long forgotten as more unfolds in this story.

ADT Price at posting: 64.5¢ Sentiment: Buy Disclosure: Held
7 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 11 more messages in this thread...

First 31 Last

Add ADT (ASX) to my watchlist

(20min delay)
Last $4.10		Change -0.100(2.38%)		Mkt cap ! $918.1M

Open	High	Low	Value	Volume
$4.15	$4.18	$4.05	$2.359M	574.4K

Buyers (Bids)

No.	Vol.	Price($)
1	5000	$4.07

Sellers (Offers)

Price($)	Vol.	No.
$4.20	5541	2

View Market Depth

No.	Vol.	Price($)
1	1197	0.835
1	5000	0.815
3	9950	0.810
2	21000	0.805
6	46713	0.800

Price($)	Vol.	No.
0.840	40000	1
0.850	14746	1
0.860	9795	2
0.875	9168	2
0.880	17293	2

Last trade - 16.10pm 26/11/2024 (20 minute delay)

ADT (ASX) Chart