Price hasn't dropped like I'd have hoped.
Maybe management aren't that silly.
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Price hasn't dropped like I'd have hoped.
Maybe management aren't that silly.
Those that have rocketed have often been companies that have got into trouble through exchange rate movements impacting their borrowing covenants - NPX, TSE, OST, Bluescope, etc. A cash issue restores the position.
In CUE's case it looks like a good oldfashioned "small oil company needs a bit more working capital".
I don't expect it to have much impact on the SP. Some good results with the drill would!
;)
PS It's an entitlement offer, not an SPP, not that that makes a lot of difference to us small shareholders.
Considering they got a notice from the ASX regarding their viability of a going concern to meet their obligations, I'd say they have had a few 'doubters.'
The reason for the issue is not soley because its a small company that needs more working capital, its because Maari was over budget (run by a BIG company) and Maari didnt provide the cashflows as prior thought.
I still think this could run quite well...and it wont be dilutionary if everyone takes their share.
Here's what the company told the ASX on 8/5/2009
"The company is of the view that it has sufficient funds at present to fund its ongoing activities."
This view seems widely disparate from the announcement 11/6/2009 that the company requires more funds.
Here's some of the options that I have considered for such divergent positions
1) The company secretary doesn't know which way is up
2) Both statements are versions of the truth
3) The "ongoing activities" referred to were weekly drinks and that the writer did have enough on hand to send out for fresh supplies while he was coherent enough to do so
4) That the writer imagined that he could respond in any fashion he felt like to the ASX and they would accept this. Many replies that I have read lend credence to that position
5) That the writer knew that he could respond in any fashion he felt like to the ASX and they would accept this. See 4
I hope others can shed light on what possibly might be happening here.
I am glad that others can see positives in this sorry mess. I just want out and am exploring whether I bought these shares on the basis of a misrepresentation. I shall be taking advice from Drillfix on this!
The answer's probably " All of 1 - 5 "!
Seriously, it wouldn't surprise if CUE would be happy to pick up Todd's money, plus a bit more from a few odds and sods.
I seem to recall this happening in the distant past - a nice, straightforward way of keeping CUE in funds and boosting Todd's stake at the same time.
;)
Would expect a "white knight" to buy enough shares to get up to the 17c/18c level.. to induce us mushrooms to take up our rts..... we shall see..?
does the company want ordinary shareholders to take up the rights that is the big question . Looks as though this move will further cement the top shareholders holdings in the company.
Look at the forward game . Wortel is to be developed . MEO is about to farm out prime CUE ground . Spikey Beach worth 11c ??? NZ activity . Maybe a surprise in PNG as the patch is actually back in Bizz . HZN is worth watching . Go with the flow . Once the cash is in the bank , this will look worth a play to many . Who cares if some dont take up entitlement, the encouraged players will ...