questions and answers, page-31

Thorburn,

With the assumption of a discounted placement, it would take very good news to get much movement out of this.

Why buy at even 15c when you know that a CR will be made at (say) 13.5, and the recipients will often take the quick profit, dropping the price back to ~14?

If they advised the market than any CR would be a rights issue, based on current holdings then the price would rise anyway, which, as you say would reduce the dilution issue. Further, and good news would flow throgh more freely as holders would know they weren't going to get blindsided and have their value stolen.