GBG 0.00% 2.9¢ gindalbie metals ltd

Rights Issue Update

  1. 173 Posts.
    lightbulb Created with Sketch. 66
    On 17 July, details of the rights issue were posted - https://www.codaminerals.com/wp-content/uploads/2020/07/20200717_Coda_ANN_Results-of-Rights-Issue_Release.pdf

    Just to remind us of what this was the Rights Offer:

    Number of Shares held by Eligible Shareholders as at the date of this Prospectus 21,563,8178
    Funds raised from the Offer (before costs) (assuming full subscription) $2,156,3819
    Number of New Shares offered under this Prospectus 21,563,81710

    This is what happened:

    Number of new shares subscribed for by existing shareholders 10,117,162
    Funds raised from the Rights Issue and Shortfall Offer $1,011,716

    So the shortfall was 11,446,655 shares or ($1,144,665)

    Its now up to the the Lead Manager to find buyers for the shortfall.

    So based on Section 2.14 of the prospectus, Coda only have $5.095 million in committed funding (Cash plus Rights take up) with a planned spend of $4.641 million for the next 12 months. I think that plan will require a little pruning.

    So in the past twelve months:

    Delisted at 29 cents (after 10:1 consolidation) in July 2019
    Buyback at 20 cents per share in March 2020
    Rights Issue at 10 cents per share in July 2020

    I think unless they can monetise Elizabeth Creek in the next 12 months, this one will be cooked in the next 12-24 months.

    I have officially written this off in my mind.
    Last edited by wgly: 21/07/20
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.