It is a simple answer and it is why the CR was done with this dubious timing. The CR closes 17/10. The Directors do not need to openly declare anything at that time. The AWE election period ends 24/10. The timing is designed to create concern and uncertainty. Do I take the risk and take up my entitlement or don't I. One view is that the timing is set to get the best take-up possible but here's the rub....
The Directors have the right to place the shortfall
This is like a bet that you cannot loose. If AWE do not proceed then the directors, at best, will take only a very small allocation and let the lead manager try his best to get the shortfall done. Poor old shareholders who supported the CR.
If AWE proceed then the Directors will take up their full entitlement and also ensure the shortfall finds its way into friendly hands.
Hope you all feel like a guitar because you are being played
QFY Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
