Looks to me that this "unofficial" statement has spooked the market somewhat which is a bit unfortunate. Its created uncertainty around where that information has come from and could a capital raise be a possibility in the near future. This all culminates in knocking a good 4c off the SP
Looks to me that this "unofficial" statement has spooked the market somewhat which is a bit unfortunate. Its created uncertainty around where that information has come from and could a capital raise be a possibility in the near future. This all culminates in knocking a good 4c off the SP
Not to worry though as a month ago it was trading at $1.15 ish
Sorry Balance for clarity do you mean that you confirm that PEB would not be able to have a Cap raise in the near future or that you contradicted that statement. Thanks
Sorry Balance for clarity do you mean that you confirm that PEB would not be able to have a Cap raise in the near future or that you contradicted that statement. Thanks
PEB will be going ahead with the capital raise.
The statement today simply reaffirms the statement yesterday that the board has not as yet ‘approved’ the terms of the capital raise as set up by the ASX site yesterday.
An updated report in today's NBR on the Pacific Edge confusion contains the following:
"An ASX spokesperson told the Australian Financial Review: "The application, which included the capital raising, was lodged and the information published in accordance with ASX's standard process when it receives listing applications".
Looks to me like a CR is/was definitely planned to be announced in conjunction with the ASX listing. According to PEB yesterday a CR has not been signed off by the Board so, someone has jumped the gun sending the docs to the ASX.
PEB saying this morning that the ASX information is incorrect doesn't necessarily infer they aren't going to proceed. Certainly the closing date of 10 September will have been wrong, but it also might simply mean they change the CR to $65m or $75m, or the issue price to a figure higher or lower than $1.20.
I bought a bundle of PEB shares in a November 2019 CR at 10cents each. Getting more capital in while the SP is at current levels is an intelligent move - provided they have a good use for the funds.
Small fluctuations in SP are actually irrelevant as are SP values one month or 16 months ago.
The question now is that the ASX was in possession of information that could only have come from PEB. As I have said before how often would market sensitive information have been released to the market by mistake on the ASX’s behalf. You can’t make that stuff up.
Assuming that there is some substance behind this announcement and $70 mio is required along with increasing lab throughputs with lower cash burn I think that could mean that additional capacity is required which is actually good news. This combined with the advertising for more staff seems to be the more likely reason for requiring additional funding IMHO. Who better than the Aussies to tap for this expansion?
I’m also pretty sure that if there is a CR they will make sure existing shareholders also get a chance to buy at a reduced price based on their current holdings,
Originally Posted by 850man
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