Ann: Trading Halt, page-32

Maybe they are going to do the unthinkable and do a CR for present shareholders only .

The Brokers hate that because they don't get to feed their clients ( mates ) the near sure thing short turnover trade .
The value proposition is so good here that even if MAY did not take up their entitlement restricting it to present shareholders MEL would still get the money if they had an overs facility .
Even if there was a shortfall it could be placed quickly .
They are a minnow and will not be raising a huge amount of money .

Not cross promoting but the latest two capital raisings by BRU are very instructive on how to do it and how not to do it .

Both raisings were at the same price of 15 cents .
The first was an entitlement offer to current shareholders with an overs clause .
It was over subscribed and some money was returned .
It was not underwritten .
Huge goodwill displayed by their shareholders.
The SP never dropped down to the raise price and the share price doubled shortly after.
The oil price was lower than it is now .

The recent CR was a surprise to the Market as BRU appeared fully funded for an exciting drilling program .
The SP was moving up strongly on anticipation of the commencement of drilling .
They made a relatively large placement at a deep discount to the market price at 15 cents and a smaller non underwritten SPP to current shareholders at 16 cents !!!!
It had to be that price because the discount to the market price was so great that regulations prevented it being at 15 cents .
Huge lack of goodwill by current shareholders , little take up of the SPP as the market price fell as low as 14.5 cents before the SPP closed .
Despite the well being spudded the SP is still stagnant at around the SPP raise price.

Imo their is a lesson there for microcap stocks that have a large proportion of retail shareholders ( that is most of them ) .
Don't trust the sales pitches of the brokers .
Don't screw your current shareholders .
Do everything you can to keep the shares out of the hands of the short term turnover so called professional or sophisticated investors .