re these shares to market, after much worrying and deliberation on my part one of my contacts (my old man)has suggested that the reason for Prana selling their shares to market at this unlikely time may be as follows:
At present they (Prana) have the right to sell their reserve shares as and when they see fit (apparently as per ASX rule 7.1 and 7.1A) however under the ASX rule 19, definitions, such an entity does not include any company that is a member of the ASX 300. This will be Pranas situation as of Friday nxt week (March 21st)from here see below in his own words to me:
Under Rule 19, definitions, an 'eligible entity' is a company not in the ASX 300 !
From the 21st of this month they will be in the ASX 300, and they will cease to be an 'eligible entity'.
If I understand correctly - 'poof' goes their right to sell shares on market and they are back to making shareholder approved placements to big investors, the usual 'cap-in-hand' approach. At the usual huge discount and probably with unlisted options attached, either free or at some relatively low future price. Much dilution is involved and it will cause the usual significant downward pressure on the SP, which is not so pronounced the way they've been doing it lately. SHAME!
Wisely, they're making the most of the present opportunity, before they lose their right to do it.
his comment ends here.
So this would explain the reducing share price over the last few days re extra supply being made available on the market alongside reduced demand and of course the reason for selling the shares in the first place.
All my opinion only and all shareholders should do their own research and verify everything themselves.
A very relieved shareholder ;)
PBT Price at posting:
$1.03 Sentiment: Hold Disclosure: Held
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