The other thing terrier is that the rights issue is pretty much taking place at the current market price. Not at a discount (although you could argue that it's hard to accumulate stock at 4-5c at market in good quantity) - Point I'm making is that because there's no discount, you're only going to see true believers and long termers buy the rights and the stock. So tight hands. Where as if they did the spp at a massive discount then the stock would inevitably pull back further to that placement price. I think this will give us a nice base at 4c to build from.
The flip side to non-discounting of course is that the placement may not be as successful. But time will tell. A full subscription will send a strong message to the market. Especially if a bunch of rights are purchased by an insto or new cornerstone investor or player in the industry. That would be a welcome surprise.
CHF Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
