One of my big issues with this cash raise is that I believe that what will follow is a consolidation. The reason I have a problem with that is it remov es the phase of growth where investors can make significant money. Going from 3c to $1 offers far more return than the share consolidation would offer.
It is clear that with close to 3 billion shares any further cash raise at this price is almost impossible to raise funds needed. Where is the money going to come from for the 100mw solar farm? If they consolidate at 30 to 1 the shares on offer is greatly reduced. The share price gets close to $1.
The company then goes back to the market, offers more shares and it is easier to raise money at $1 than 3c.
It is a pretty average act for long term holders but I can’t see anyway forward. It almost mimics what LON has done recently.
I hope they address this at investor presentations.
CCE Price at posting:
3.0¢ Sentiment: None Disclosure: Held
