I wouldn't say that OEL have no chance with this rasing...
BUT the risk is high, with the shares currently at 6c most shareholders will be fearful of being one of few who exercise. If the rasing is a dud the share price will undoubtedly fall further.
So, it is a big risk to participate in the raising at 5c with the shares trading at 6c. I suspect most will hold off and see (in which case the raising will fail).
There is a strong "free rider" issue here - everyone wants the benifits of a successful raising but no one wants to take the risk that it will fail - so it is likely to fail.
As a potential investor (not rights holder) I would not be buying ahead of the raising. If I were a holder I would be unloading at 6c knowing I could exercise my "option" to replace the stock at 5c in a couple of weeks.
It will be a nervous wait for OEL board and management as no serious investor will post the cheque in early, they will mitigate risk by waiting until the last days.
p1000
OEL Price at posting:
6.2¢ Sentiment: None Disclosure: Not Held
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