I suspect that this unusual circumstance of seeing a stock trade so low after an equity raise is likely due to the low uptake by eligible institutional shareholders, only 73.3% of which bought the shares to which they were entitled. The last time they raised equity like this, back in Sept. 2021 at $0.375, the uptake was 99.6%.
So if the raise was fully underwritten, I think that means Cannacord Genuity bought all of the shares from AMA first, and now they (CG) are dumping the 26.7% that weren't taken off their hands at $0.075 by eligible instos. I actually don't know if that's how it works, but that is my suspicion. if anyone else here has experience in these matters and can confirm or deny I would appreciate it. If I'm wrong about that, then it's really hard to imagine where else the selling could be coming from...
If I'm right it's likely a great buying opportunity because CG would only have a limited amount of shares to sell and once they're out of the way, AMA probably gets a decent bounce.
AMA Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
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