I agree totally. Don't get me wrong I am looking to hold this long term as I see the potential of the resource and the need for it with the EV revolution and are significantly in the red at present but I was surprised that a cap raise was needed in the 1st place given they had enough funds for 3 more quarters and the most recent ASX announcement said "Meteoric’s current exploration programmes at the Midrim Cu-Ni-Co & PGE property and at the Mulligan and Iron Mask cobalt properties are fully funded and is part of the company’s strategy to rapidly advance its portfolio of Canadian projects".
If the rock chip samples are only a few days away why did management not wait and get the market excited with them and then cap raise at a higher price? Also the cryptic trading halt announcement sounded like at least the cap raise would go to a corner stone investor who would hold long term but now I see its just going to sophisticated investors and from what I have seen of past such raises these sophisticated investors are not long term holders and will dump their shares for 20 % or so profit when they can so I now see this having a negative impact on the SP at least short term. Very disappointed with management if this is the case.
I at least hope they release the sample figures soon to negate any impact from the lower cap raise and that the funds are used to "fast track" the drilling of the cobalt.
MEI Price at posting:
6.5¢ Sentiment: Buy Disclosure: Held
