I came across this share two nights ago (27th Feb) when it...

I came across this share two nights ago (27th Feb) when it released the following ANN:

http://hotcopper.com.au/announcements.asp?id=400625

Renounceable rights issue, fully underwritten by Pato's, 9 shares for every 11 held, ex and record date to be announced in March. Price of raising = 6c. A free option will be attached with an exercise price of 10c. The exercise date is 30th June 2015. The raising price is a 33% discount to the closing price on 26th Feb and a 42.54% discount to the 30-day VWAP. Amount to be raised: $6.1m before costs (current market cap = $7.441m at today's close.
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So? Well, this is the second attempt at raising- on way better and more favourable terms to shareholders. Here is the first, announced on 12/1/2012:

http://hotcopper.com.au/announcements.asp?id=384772

Non-renounceable rights to raise $6.2m. 5 new shares for every 9, issue price = 9c. Free options exerciseable @12.5c, exercise date = 3 years from when the options are issued (note that is a few months less than the above new exercise date of June 2015). Uncertainty of underwriting.
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Right then. So the new agreement is a much much better one.

But what about the company? Well, it's all about pig iron in Uruguay- well, mostly, but it had other assets. From the most recent quarterly, the company had $1.3m cash. Add some $6m if this capital raising happens, and it will have >$7m cash with a market cap of $7.44m. Assets for free almost.

Check out Quarterly put out on the 31st Jan, for the activities and finances. Also, check out the Fe intersections- seem good to me:

http://hotcopper.com.au/announcements.asp?id=390159
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Gladiator had Mr Geoff Wedlock as Chairman. Mr Wedlock died tragically in the crash that killed the Sundance Resources team, in June 2010. The new CEO is Mr Len Dean, former iron consultant, inter alia, to Onesteel, BHP, etc:

http://hotcopper.com.au/announcements.asp?id=207152
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I had never heard of GLA, but I do like the sound of this capital raising. If anyone is interested in this, we still don't have an ex-date, so people can still participate. I am not sure how hard it would be to get to 10c for the options, but if you look at the HC share graph, the company was 19c 6 months ago, 13c at the beginning of January, and 10c two weeks ago. The new options will be listed on the ASX. They'd have to be worth a bob or two, and there is no pressure on them because they have a >3-year expiry date.

This one is unknown, unloved, forgotten. The Top 20 shareholders hold about 57% of shares, so it's not so tight that you can't buy any. JP Mortgan is tere with a few accounts, HSBC, ABN Amro, Merrill Lynch. L1 Capital holds 6.9%, topping up in April, 2011.

And my disclosure, or why I am making this post? Well, I reckon when a first capital raising doesn't make it, and a second one is offered- with much more favourable conditions- then they'll get this one over the line. I bought in yesterday (it's after midnight now), @ 6.2c, but if anyone else buys, they can probably buy in cheaper than I did, because the last sell was @ 6c.

A few of us got into CRL (not cross-promoting, just mentioning), and I saw that some HotCopper people like this kind of thing- a "special circumstance" for a company. Out of the blue came this one. For long-term holders, it;s disappointing for a raising price to be reduced, but for newcomers- with no date as yet, so anyone can be in, it looks tome like an opportunity.

Thoughts?