Even if you participate, you have to cash out more cash for the same percentage holding. If I was holding $100K of stock, for example, I wouldn't be too happy having to fork out another $30K to maintain my holdings. It's always in everyone's interest for the company to raise money at the highest share price possible. Why do you think the share price was 4c 3 years ago and now is .6 of a cent? Is it because their potential is less than it was then? No it's because they've issued loads of shares over and over and over again. So not only do you fork out more money, your shares are worth significantly less per share.
if they have located a decent resource it would be a bit suicidal of them not to include long standing shareholders in the cash raising
Why? Of the last 3 placements in just over a year, two of them were to sophisticated investors, not open to current shareholders.
THR Price at posting:
0.6¢ Sentiment: None Disclosure: Held
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