Yes extremely disappointing the way things have developed. I'm only a relatively new shareholder. Thought I bought at a good entry level of 9c. That turned out to be a very poor decision. I have been in contact with Matt Shackleton a few times now since the cap raising to express my concerns and to get an explanation from him in regard to recent developments. I won't disclose any of that info as I don't believe it is ethical. I will however say that I was very impressed with the prompt reply I have had on most occasions from Matt.
I still don't agree with the detail of the recent cap raising. In my opinion the offer was too attractive and with no opportunity for average shareholders to take part, it was an immediate and substantial devaluation of their holding. The cap raising offer to raise at 7c (which is a 2 year low in the share price) was bad enough, but then to add further cream on top with accompanying options just served to further devalue the share price. To me the offer was too good and that is the reason the cap raising was oversubscribed.
As a disclaimer, I have no idea what it takes to raise capital in the current climate with sophisticated investors. Maybe the offer needed to be that attractive to raise the capital they were after. However, to my way of thinking I would have thought an offer at 8.5c with accompanying options would have been a good deal or an offer at 8c without any options would have been attractive to sophisticated investors. These are my thoughts only and I don't profess to be any sort of expert when it comes to raising capital but I've experienced a lot of capital raisings in my time and this one that APC have gone through with seems very unfriendly toward the average APC investor.
The current share price of around 5.5c is the lowest it has been since Dec 2015. The Potash project has grown a lot since then and has been further de-risked over time. That together with gold drilling of some prospective targets shouldn't see the share price where it is now. You have to ask the question WHY? For me the cap raising has a lot to do with it ............ raising at 7c (usually brings the share price down to that level) .......... providing free attaching options in the offer (further devalues the shareprice below 7c once you include the value of options) ....... and a lot of shareholders having had enough and selling out and taking the loss as we approach the end of the financial year (resulting in further selling pressure pushing the share price well down into the 5's).
That's my take on things ........ be it right or well off the mark!
APC Price at posting:
5.5¢ Sentiment: Hold Disclosure: Held
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