The issue is simply that loyal shareholders are not given a bite of the cherry.
With EKA it was a prorata issue and I maintained my shareholding by taking up the issue. With ADI one shareholder AWE was given the opportunity of maintaining its percentage holding. Other shareholders were not. The discounted shares were given to a third party who will sell these shares at a profit almost immediately.
If AUT do raise more capital I would hope they follow the lead of little brother and give me a chance to maintain my percentage holding.
nioka
i thought i read somewhere on the eka thread on hc that you had dumped out the majority of your shares in adi and went to eka??? and if eka did a pro rata to existing shareholders, why were they not interested in institutional support long term? i thought the eka share raising was under-subscribed, with bell potter taking up the slack??
from eka a few weeks back
"Valid acceptances from 346 shareholders were received in respect of 15,467,955 shares representing a take-up of approximately 70%. The underwritten shortfall of 6,574,357 shares will now be placed by Bell Potter as underwriter of the Entitlements Issue."
perhaps adi didnt want the same scenario.. or am i thinking wrong here?? plenty of clowns whom are adi holders are absolutely going to town on ADI re the cap raising yet ignoring the lack of support eka got from their own shareholders just weeks ago.. imho institutional support that adi has just achieved is a brilliant move and well timed..
also, what loyalty are you referring to in regards to the adi share? if i understand it right i thought you were one of the highest volume traders on the adi and eka weekly turnover with most of your position in the later? do you expect loyalty points for all the shares you have traded in its entirety? you have made $4000 into $400000 according to your own posts on the forums by trading between the partners.. imho your way ahead of the game in a big way... which i absolutely admire you for btw..
also, where is it stated these investors will be selling their stock immediately? is it a guess or a fact you are aware of?
tia
condog.. what i am saying is that your not in a position to fully appreciate the costs needed to keep those extended acreages. if your not being topleased then your looking to have to raise way more than $1500 per acre to renew if a landowner wants to (so aut have some pretty big capital requirements JUST FOR LEASES unless they commence immediate drilling).. i know of ranch owners in our acreages who have been handed $600 per acre cheques already by enduring, thats theirs to keep and spend.. and a promise of $900 more in a few months time when their leases run out, so $1500 all up per acre.. enduring will lose the $600 if hilcorp dont drill their leases, or gain acreages from the AMI jvp bigtime if hilcorp let our acreages go.. topleasing only happens on the very sought after and profitable plays.. and topleasing is becoming a huge issue.. so dont think a whole bunch of wells wont be needed to be drilled in all regions in a very very short period of time.. whether the respective directors are calculating their future requirements and commitments correctly is up to the investor to decide, you have very much explained your position without much substance, and forgetting history entirely its very much a distinct possibility that wells are being drilled to keep leases, as is the case atm with the drilling in longhorn as your obviously not aware.
further you present a case of aut having the ability to finance all necessary future needs.. as you put it.. based on an email you claim you have..(keep that email for later condog, could be a lucrative one if you follow my drift)
you know, if i believed every official release the jvp put out since the project began, and in the case of aut i include that last cap raising at around .50 cents aut did, where 2 wells were promised for the extended acreages and those wells never eventuated..then i would not be as cynical of aut.. dont get me wrong, i am investing in aut, and i fully understand their position, but i see it way way different to you right now.. in this email you had, did you get a full business model to back it up, and a full explanation of the number of wells, which acreages they were in, leasing capital, pipeline capital requirements, and the timings? imho aut cannot raise capital unless their sp is well above .50 or those previous investors from a few years back would be absolutely livid in seeing further dilutions.. and the directors themselves are loving the cheap shares they are giving themselves..
condog, all directors will heavily promote their position to you, and anyone not doing it would be remiss,, but i listen to what they say and research everything i can to see how accurate they may be.. not many wouldnt be saying
'we're fine. alls sweet, looking good"
i look at your last post condog and really dont get your perspective you have on fellow investors here.. think your failing to see the picture here, as i am investing in aut, and i have done so for an outcome.. the 4 extended acreage wells.. i see significant upside.. but i expect a lot of changes and see a lot of possibilities and eventualities in the near and long term for all the respective jvp partners..