Despite my disappointment about the 1.5c capital rising I want to keep my word and share the CEO's reply with you :
I am a great respecter of the Hot Copper forum. It’s a tough judge but then it is a great sounding board.
Anyway, I understand and share your frustration. Capital raising for junior and emerging stocks is hard work, and compliance take time. But while capital raising may have its downsides [dilution, discounts, stock suspension, etc], the share price will rise faster and stronger as a result of being well-funded.
The delays here are unfortunate. There is nothing wrong with the company. We are financially sound, progressing with our work programmes and generally doing all that is expected of management and more. It’s just that capital raising is a price sensitive business which is why trading is halted and suspended. Those are the rules we are bound by. And, there’s a heap of paperwork, ASIC and ASX compliance documents – our hands are tied to this system. But I have great people and excellent legal support. Arqueros is a great project - please be patient.
Nick
My reply to his reply :
18 November 2009
Dear Mr Lindsay
Thank you very much for your reply mail. I am disappointed to see the capital raising at 1.5 c and 50 % more shares. I would rather have seen it at 3 c and 25 % more shares. Unless there are acts and regulations that have prevented the company from doing so I think that would have signaled the confidence of the board to the market that more will be achieved and that the company is currently undervalued.
I have sold out at 2c after buying at 3c average because most sp will drop back to the issue price. I will be watching LRC closely and may re-enter at a cheaper level.
Kind regards
LRC Price at posting:
1.8¢ Sentiment: LT Buy Disclosure: Not Held
