Feeding at the Trough If AXI management really believed there's a good chance of $20 million coming from the Chinese in the near future, with delivery of a satisfactory feasibility study this month, would they be issuing 15 million shares (and a boatload of warrants and options) near or below the stock's 52-week low?
Why not raise cash after an excellent study is delivered in a few weeks? A positive feasibility study would push the stock up.
Why not raise cash after XinXing comes through with its long-promised $20 million later this fall? A real Chinese commitment would send the stock soaring.
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I'll tell you why. AXI management already knows the feasibility study stinks. They already know the Chinese aren't putting another dollar in this project. They're trying to raise some cash to pay their salaries for the next couple years before all of you figure that out too.
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The $3.26 million (net) they raised isn't going towards drilling. Zero meters will be at any of AXI's properties in 2012. It's going to the $875K that the top 5 management guys pay themselves. It's going towards the $440K Toronto office. It's going towards "business" lunches.