Given PSY have stated the placement will result in the fund being a substantial holder, its then likely the fund will be a longish term holder rather than tip the shares out on any short term positive news. And you can just bet they would not be making this investment on a wing and prayer basis, my guess is they would have a fair idea of who is knocking on PSY's door for a partnership or would have at least canvassed some big players to ascertain the potential of the technology I have before seen placements done (for a substantial strategic holding) marginally above the prevailing share price. Then again if its say 8 cents or so this will be still very supportive of the SP. Normally, discounted placements do cause a fair SP drop simply because of the fear the shares will be tipped back into the market quickly to make a fast buck. I don't think this is how our game is going to play out, given the substantial strategic holding this fund will have. I honestly doubt US based funds of any size at least fiddle around with penny changes in stock prices to make a few quick pocket-money bucks. They are more savvy than that
PSY Price at posting:
9.4¢ Sentiment: Hold Disclosure: Held
