Market Cap ARW is the largest biodiesel producer in Australia owning three plants with a total nameplate capacity of 150 million litres per annum. ARW's three plants were built at an aggregate cost of approximately A$150 million. ARW has made significant changes in recent years to become a cost effective producer of high quality biodiesel to address growing biofuel demand in the Australian market. More information on ARW can be found at their website; www.arfuels.com.au
So why do they only have a $18M Market Cap? The stock is trading under a penny with a 52 week high of 2 cents and over 2 billion shares outstanding. Now ARW wants to raise $4M, OMG, how many shares will that be? 1/4 of the fully diluted? The numbers must have looked good on paper but when you look at ARW's revenue for the quarter I am sctratching my head as to why LEC keeps funnelling money their way. No doubt they may take a bite out of the $4M raise but when will this bear fruit? The Auzzie Gov't might have to step in at some point and help out as part of a green initiative I think. Otherwise these guys could drown in a moutain of shares and look like a US OTC play soon. Just my opinion of course but scratching the surface on this story created more questions not answers.