AW, The issue is not dilution. The Issue is long term holders were not give the opportunity to participate in the CR and possibly (more than likely) make a profit on shares purchased.
I have worked in the industry for years and understand some of the back room deals in regards to these insto CR's. These insto managers throw their weight around.
If a requested CR is not appealing to the Insto managers, they will say we won't provide the resources for your CR unless you provide a carrot. So it is very possible the DM needs a CR for one of the other companies he is associated with, so he offers a great opportunitiy to the Insto's in 4DS so they will provide CR resources to the other company DM is associated with.
I can't see any other explanation as to why he pursued a CR at 6.5c when the CR could be done with shareholders at 8c, 10c or 12c, all which I feel would have been fully subscribed as PL5 and PL6 are on track (as DM stated).
Cheers, DM OUT
4DS Price at posting:
8.0¢ Sentiment: None Disclosure: Held
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