IMO
If LNC made the identical announcement and announced the issued price of the $60 Million raising at $1.50 instead of $4.50 I believe the market would have responded with a current shareprice of $1.80 or higher.
Isssuing shares is printing paper for the $60 million cash abeit less paper however still paper none the less.
Why such a higher issue price of $4.50 when the shareprice was at $1.05 prior to the announcement?
Why would the Chinese company not wade into the market and buy 25 million shares? ( 5% of LNC issued capital ? )on market?
What would the average price be for $25 Million shares?
Do you think if you were a shareholder in the Chinese company you'd be asking a few questions?
Is this a good deal for the chinese company ? You'd have to say NO then by defination it must be a good deal for LNC.
Why has the market not given it it's full appreciation?
I think i comes down to belief in the management at LNC.
The jury is still out and while as a shareholder you'd rather be on the end issuing at $4.50 you can't help but wonder why all the "cloak and daggers".
I have my opinion but im not prepared to air it neither do i think it's relevant.
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