The market has indicated to AED on 2 successive occasions that...

The market has indicated to AED on 2 successive occasions that at whatever level AED choses to set it's CR, the market will push the SP below that point. At the commencement of the process when AED announced the first CR on 22 March the shares were trading at 28c. So we now have no extra capital, a MC that will no doubt go below $20mm as the SP inevitably falls below 10.5c and a loss in MC of approx. $40mm. They have achieved nothing at the cost of approx. $40mm to shareholders.

So what is the plan now? Apparently another CR! Not sure what kind of inducement they can offer to get this over the line and I very much doubt that anything will work in the current market environment.

Other options previously mentioned, such as a sell down of Puffin might have been worthwhile before they embarked on this failed course. To achieve a decent outcome now will be difficult but may be necessary. The JV should now have sufficient additional processed seismic to determine whether such a deal would be worthwhile to both parties.

Any further attempt at a conventional CR on market is IMO doomed to fail.

ANZ