If they're unprofitable and will do multiple capital raisings, then the higher capital raising has little benefit to the SP - it will fall like a rock (e.g. PLA).
If however they are profitable and raise a fair amount of money only once then the higher capital raising will keep the SP from falling too far (e.g. IVA). Ivanhoe raised lots of cash at $1.41, the SP subsequently fell to <$0.90, then quickly rose to $1.42 again.
I think KZL is the mid-point between those 2 examples. They raised a moderate amount of cash and company is probably making a profit, so the current discounted SP is a pretty safe entry point.
KZL Price at posting:
25.5¢ Sentiment: Buy Disclosure: Held
