The timing of the capital increase is terribly unfortunate. We are so close to achieving some major milestones that would have had a very positive impact on the share price. Unfortunately, with the ASX reporting system we had to state in our last Appendix 5B that we only had 0.55 quarters (or 50 days) of funding remaining - even though WE know that the director loan has not been drawn.
It is important that we continue to advance Kwinana. It is no longer a matter of IF Kwinana EcoGraf is going to be built. There is a lot of pre-development activities that need to be commenced so that we can work towards 2021 production.
It is disappointing that we could not wait a few more weeks for third-parties to make decisions, so that we could raise capital at a higher price. Unfortunately, third-party decision makers are not working to our timetable :-(
I do not think that the capital raise will adversely impact the share price too much or for too long. In fact, I believe that having $1-$2m in the bank will give comfort to those investors 'sitting on the fence' to make the decision to invest, and from my personal view, it gives me confidence to start buying again.
On another note, I have confirmed with AS that we are in the process of updating the financial modelling for the Kwinana DFS to incorporate the high purity fines product that we can produce. This will be done in parallel with Export Finance's due diligence - it won't cause any delay.
I am not thrilled about the capital raise but I understand the circumstances which really left our board with no other viable option. AS said there has been no decision made by the board to restore salaries to 100% - which is a positive.
The big news items are still coming.