Boat, racing car, tax bill – there are often good reasons, however, when 3 of 4 directors offload the entirety of their holdings and then there is a capital raise I scratch my head. 

360 Capital, which announced last month they were offloading their holding which accounted for a third of the GDC script. The directors are all with 360 Capital which will be the explanation. 

The summary is the divestment and the cap raise probably should not be linked. 

That said, Macquarie has also exited their holding. 

This is a sector that has legs, the market maintains strong growth prospects both hosting public and private cloud. 

The capital raise, is expected to generate $42M, is to be used for “strategic investments” with no other detail although this is basically the business. The group invests in and have data centre interests in Asia Pac as well as Europe both wholly owned or in JV arrangements. 

The other couple of straws here are worth reading. Pat has a more detailed and balanced view than mine – especially the benefits of 360 Capital exit, rather that it being a red flag.