re: Ann: MCP Announces Completion of Equity R...
Simple answer is I don't know (guess one could ring the company though), but a couple of observations.
1) Although the placement under the proposed SPP could not be settled until after the ex-date for the current dividend, to keep things fair they would need to (somehow) include the dividend.
2) Company says they retain the absolute discretion to increase/decrease the $6mio amount to be raised. The company has "about" 4,000 shareholders, so if each was to apply for their maximum entitlement of $15,000 then this is a potential $60mio of applications. I wonder what the actual value of applications will be??
3) And this is the part that is (IMHO) a big con - the Company "boasts" the issue price of $2.20 is a discount of only 12.2%-12.7%. But, the new shares will also qualify for the interim dividend. So the deal is - you agree to buy the shares at $2.20 and in about 4 weeks time I promise to give you back 14.3c (gross). To my mind the TRUE issue price is $2.057 or approx. an 18% discount.
Cute little play on wording but very deceptive by any measure.
MCP Price at posting:
$2.44 Sentiment: Hold Disclosure: Held
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