Yes I thought that the selling of shares for 2.2c to raise money to buy shares for 2.5 c with 1/3 free 3.1 c attached option did not seem to be a good play to me but there may be other reasons why they wanted to put a scare into the market . There is a buyer for 9+ million shares at 2,2 c . Who is that ? Has the Cavalry arrived ? There has been some strange trading taking place .
Anyway I am happy to buy shares that I think are undervalued no matter how things eventuate .
It will be interesting to see if MAY takes up all their rights . They could even take up a few from the shortfall pool now they have sold down 2% but the terms of the CR will not allow them to end up with more than 20% of MEL . I very much think that they might only recycle the sale proceeds back into MEL shares .
Using their cash to buy more MEL shares would need a justification to their share holders that would be probably difficult for them to swallow especially after the executive chairman did so well out of the TO bid .
MEL Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
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