Q: This company just announced another round of funding to hopefully get their mine off the ground. Is there a chance this stock gets some legs now or is it dead money?
5i Research Answer:
Yesterday AOT announced that its $15M financing was in fact faltering a bit and warned that bankruptcy is a possibility if it is not completed. There is supposed to also be a $150M financing and a 1: 50 reverse split. The stock is down 83% on the year now. Even with successful financings, the dilution is massive here when you raise $165M and your stock price is 2-cents. IF all the capital raises are successful then the stock will be de-risked a bit and should be able to show a good recovery. But zero is also a distinct possibility, and we would not want to be involved here.