As per my Straw below:
I think I've connected the dots with the timing of this ??
The company has issued the rights issue, very much structured towards ensuring the money flow is to the company and not opportunistic purchasing on market via the 2 x free options that you only get access to if exercising the Rights Issue.
And the timing aspects IMO is they are positioning to get a cashed up balance sheet that will see them through to the establishment of the Cuban mines and feasibility stusies PRIOR TO the US OTC listing !
it's only my theory, but it would ensure that the OTC listed instruments are best received by the American investment community.
Any thoughts / alternative opinions ?
AAU - Rights Issue with attached Options to fund Cuban Mine projects
So AAU just issued an interesting Rights Issue with the following points:
- Rights issued at 6.5c as 1 for every 4 shares held
- record date 6th of May
- Rights are renounceable and will begin trade on 5th of May
- for each two new share issued under the Rights, a free option @ 13.5c expiry 30 April 2023 will also be issued
- Brian Johnson who holds 70 million shares has indicated he'll take up at least 6 million rights shares ($390K)
- proceeds used to fund Cuban projects