OTCQX:AVLIF - Post by User
Post by
smilingmickeyon Dec 22, 2016 11:10am
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Post# 25635079
Waiting for news re cash raising
Waiting for news re cash raisingWe've seen a big drop in the share price of AAL since the news of the plan to raise (for a junior) a large amount of cash for exploration in Argentina.
On the face of it, they have a great deal with Orocobre but maybe conservative bankers will be wary of the political scene in Argentina given the long term nature of the investment.
As part of the deal AAL has to issue new shares foc to Orocobre amounting to more than 30% of the equity so a sizable dilution.
Given that Orocobre's partners in their recently completed lithium production in Argentine are Toyota who need a secure supply of lithium, you would have thought that there might be some arm twisting to ensure that the cash raising is successful. The question is at what price? Maybe AAL are being hung out to dry.