AD8 – comments on SPP & current price

Hi Jacky,

We have covered much of your query on the AD8 SPP in an earlier question hence we will look to provide a bit more overall colour here.  We do still hold AD8, having trimmed the position only.

The raise came at an interesting time given CEO Aiden Williams sold 51k shares 10 days before the announcement – usually a no no, though it appears Aiden was unaware a capital raise was n the works. This suggests that the bulk of the reasoning of the $50m institutional placement was opportunistic. Shares had run hard to all-time highs prior to the announcement and the funds will be used for potential M&A opportunities, though no specific deal has been disclosed. This is not necessarily a bad thing, particularly when a deal is well bid and AD8 has managed to trade above $13 for the most part since the announcement, a sign bidders in the placement didn’t receive everything they wanted.

We will keep subscribers updated as we approach the SPP offer close on October 3.