There seem to be some existing shareholders that are upset with management after the announcement of this capital raise.
I can't understand how anyone could be upset with management, as their mandate is to create shareholder wealth for the company over a sustained period of time, not necessarily today. They take the soph route for raising funds, as it is much faster & cheaper for the company.
The problem IMO stems from shareholders having a different timeframe to management, as management are looking at the life of the company, not the amount of time they intend to hold the stock. When management raise capital at a discount, rather than getting upset about it, it's more important to understand why.... Is it possible that management have more information than you do?
Lets have a look at a bit of the history here:
The RTO market was very hot in 2016 when UTR listed & the CR sold out very quickly, but by the time the company came out of suspension the heat had come out of the market & the SP was only close to the 5c raise price for about 2 days from memory.
As a result of this, management chose to reduce their vendor shares & reduce the MC of the company; they cancelled 40% of their vendor shares. The original number of shares on issue for UTR post the RTO was 749,735,545 with a MC of $37M.
The number of shares on issue post the current raise is now 760,528,121 so as you can see, if the SP gets back to 5c, the MC will only be back to the $37M it was when UTR first listed; which should be achievable IMO, given the market snapped them up when it was hot for RTO's last year.
IMO the progress UTR has made for the same number of shares on issue 12 months ago is substantial & presents an interesting opportunity for those looking for exposure in battery storage & charging efficiency space, with a MC of $19M there looks to be good value here.
Enjoy your weekend everyone & focus on the opportunity that lies in front of you, its the only one you can control
UTR Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
