"..How could it possibly help the SPP to hold back info.."
The offer price of shares under the SPP will be calculated as the lower of:
(a) A$0.0052 per share, which represents a 20% discount to the volume weighted average price of NewSat shares traded on the ASX during the period of 5 trading days up to and including the trading day prior to this announcement; and
(b) a 20% discount to the volume weighted average price of NewSat shares traded on the ASX during the period of 5 trading days up to and including the closing date of the SPP.
Closing Date is 25/2.
So..
From Friday if the VWAP for the next 5 days (to 25th) is less than A$0.0052 people will get more shares for their money under (b) offer.
Put another way, good news pushing the VWAP up above .005 (6 for example) means peoples lowest price will be .0052 not say .005 or even .004 which could happen with no news.
No news has an up side if you want more shares for your money. As it is share holders that are getting more you could argue that's great for them if the SP goes up as I expect. In the past NWT were chritisied for selling shares to "the mates" and leaving all the other share holders out, this time it's the reverse.
I'm sorry others could not explain it but I hope it's clear now.
NWT Price at posting:
0.5¢ Sentiment: ST Buy Disclosure: Held
