I'm sure management have followed the letter of the rules with this raising. I'm also sure they have NOT followed it's spirit. Trebling the issue completely changes it's tenor.
I'm sure everyone here feels they have been lied to.
I'm now hoping we don't get drilling results this week. There was always likely to be a sell-off post announcement, regardless of the result. If the results were good then their would be sufficient appetite for stock to absorb this, and more. Now I'm not so sure. And if the results are average...
How could Dugdale say that undermining the sp in this way is "the most equitable to all shareholders"? The only shareholders that can gain from this are those that took part in the spp. Even that is a moot point seeing as their profit just fell off a cliff.
I bought post announcement and on the basis of the announcement, i.e., that it would be a small raising not likely to hit the sp to any great extent. How is this equitable to me?
The only way that raising more than you need makes sense is if the results are bad. Then you don't have to go back to the market with your tail between your legs.
If the results are good then raise at a higher price.
I think the Board are taking out insurance in case the results are bad. It has nothing to do with what is or is not equitable to shareholders.
Bulldust
RMX Price at posting:
2.2¢ Sentiment: None Disclosure: Held
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