It is easy to show a link to some "article" on the net that is written by "unknown". The hard part is to show how this is linked to kab, espcialy now you talking about the capital raising.
looking at KAB chart, the price was around, or less than, 2 cents for tha last 6 months or so, so raising at 2C is fair, yes we would love to riase at 4 cents or even more, but anyone familiar with the practice will know that does not happen, sophisticated invesotrs want to make money and that is why they paritciptae. the cost was the standard 7 per cents, so what was wrong with that.
If it was rights issue, it would have cost the same, took an awful lot of time, then you need some broker to underwrite it with extra cost. so no one would have been better off really.
cheap shares? How ??
rememebr one thing, the same ann that triggered the last run, the off take agreement ann, is the same ann that mentioned the cap raising, so people knew when they bought at 2 to 3 cents on this day there was a cap raising done at 2 cents, and thet would likely result in the price going back down, which eventualy happened.
If there was the slightest bit of manipulation, the off take agreement ANN would have been issued first, let the price run for a little longer, give the "few in the know" more chance to sell their shares, while mums and dads investors are blind not knowing what is coming their way. But it is to the direcotrs credit that the two peaces of news came together, so everyone knew the good and the bad. and based on that you can decide wether to buy or sell. making it a level playing field, not somehting that happens everyday on the asx microcap space let me tell you.
KAB Price at posting:
1.9¢ Sentiment: Hold Disclosure: Held
