I wouldn't call it shafting the SH. If it was placed for everyone to participate, the delivery will require a prospectus (costly) and time inefficient to raise without knowing the appetite of the current holders. This is usually the last resort when management rattling the tin and instos are lukewarm. The fact that capital was raised so rapidly with willing instos suggest there is real appetite at the BEOT.
The news release suggest funds are for expenses used to find financiers and working capital. The huge quarterly cash burns will buy them time as they widen their options of financing. I am not sure why such a large cash burn? Seems the Chinese money is not as easy as some holders here have been anticipating and you see it reflected in the price trends.
Someone mentioned that the good news were cynical attempts to temporary bump up SP valuation. I haven't track the timing but maybe a holder can go back to Hartley's CR and see if we get the same strategy of events?
Form a pure CR perspective, this is considered heavily discounted CR which I see as not a positive. In other words JD had to dangle the discounting carrot to attract risk takers in order to make it worth that risk taking. Good luck.
IBG Price at posting:
7.1¢ Sentiment: None Disclosure: Not Held
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