will it relist??
AuStar Gold Limited (ASX:AUL, AuStar Gold or the Company) has previously announced
the intention of the Company to issue a new prospectus to raise capital for the ongoing
development of the existing operations.
The Company requires additional time to finalise the terms of the capital raising and voluntary
suspension is expected to continue until the earlier of an announcement to the market in
relation to a revised capital raising, or the commencement of trading on Friday 14 February
Well, it seems that the BOD has got themselves in a right pickle. Through their director loans to keep the company alive, they are now creditors. A substantial portion of any capital raise will be gone straight away repaying director loans. How do you sell that to potential investors? Then there is the matter of the 500k break fee and then the usual transaction costs associated with capital raises and there’s a million bucks gone already. Realistically how much could this co expect to raise, maybe 2 mill if there lucky, with a million gone straight away in the above mentioned costs. This ones a goner. She’s toast.
AUL appear to be failing to meet their obligations in respect to periodic disclosure which is a serious breach of the ASX Listing Rules and is considered an offence under Corporations Act. At this stage investors should report a complaint to ASIC.
From an investors perspective it would be categorised as an unforeseeable risk for Management to breach ASX Listing Rules and commit an offence under the Corporations Act.
or go as plan to the avq cdu ogx mine plan ?
......or harder man..