Trading halt “significant commercial agreement announcement"
Yesterday morning we also saw our 2021 Catalyst Hunter Pick of the Year GGE go into a trading halt pending an announcement regarding a commercial agreement.
In our 2022 Investment Memo our third objective for “what we want to see GGE achieve in 2022” was for it to commercialise its helium resource. GGE had mentioned to the market that it was in negotiations regarding some sort of offtake agreement but we didn’t think this would come until at least after the first well was drilled.
With the company now in a trading halt it looks like GGE may have managed to secure something before its drilling program targeted for mid-April.
The market usually responds well when a positive announcement is early or unexpected.
Of course a “commercial agreement” is still very vague so we will be watching to see what GGE announces on/before Wednesday this week.
