capital raising - a positive sign, page-2

Malay

A capital raising is rarely a good thing for existing shareholders as it has a dilutionary impact unless of course the capital raising is at a premium which I doubt. Nevertheless, capital raisings are quite common for junior explorers that do not yet have an income stream.

It is not a positive sign to have to raise funds as it simply means that AOK has run out of money which is obvious for all to see. However, it is also not necessarily a negative sign as long as they use the money wisely to create added value for shareholders. I have no problems with any capital raising as long as I am able to participate ( to prevent dilution of my holdings) and as long as they use it towards the drilling of our first horizontal well.