A private merchant bank in London has organised $5.5m in new...

A private merchant bank in London has organised $5.5m in new equity funding with new subscriptions at 2c (representing a 66% premium to the closing price before the agreement was finalised) and further subscriptions at 1.5c. To my mind this places a floor under the SP at current levels with scope for substantial upside over the short to medium term as market sentiment picks up. Now I realise that management is unpopular and quite frankly pretty lazy but the fact is they have convinced sophisticated investors to buy in at a large premium, which indicates a significant degree of confidence from people with greater insights into the companies affairs than you or I are privy to. This suggests to me a high probability of substantial upside here, because after all the fund will want a return on its investment above 2c. Furthermore the fact they are already in production, with a range of possible new projects, limits downside risk. I would not be surprised to see this trading much closer to the 2c placement price very soon. DYOR.