Agree with this up to a point, but the share price has fallen well below the level where that is the issue. It’s more than 20% below two capital raising prices so it’s a huge issue for 90% of the register - those that actually contributed fresh capital rather than buying secondary market. That has shot the chances of support for future raisings unless there is a massive turnaround. This is crippling to a business like LON which isn’t generating much in the way of cash flow and so will struggle to fund initiatives (leaving aside new acquistions).
Results out on 24 August. Clearly we are all hoping the rot stops then. I think this could all turn around quickly if there is a big east coast distribution deal done. They guided to 2Q 19 for this so hopefully they are progressing it as fast as possible given the situation.
LON Price at posting:
54.0¢ Sentiment: Buy Disclosure: Held
