There has been a lot of speculation on this forum, however I have failed to see anyone mention the general mechanics associated with an equity capital raising.
Typically a company will not announce a capital raising unless they have some broker support for the issue. The reason for this is that the company can lead themselves open to a complete collapse in their share price if they are not backstopped by a broker. So a broker will commit to underwrite an issue at a specific price in return for a fee.
Therefore in summary could Lynas's lack of capital raising announcement (despite their own auditors calling their viability as a going concern into question), simply be that IMO they are unable to find a broker willing to take the underwriting risk of such a transaction?
lynas unable to raise equity?
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Last
$6.32 |
Change
0.020(0.32%) |
Mkt cap ! $5.935B | |||
| Open | High | Low | Value | Volume |
| $6.34 | $6.37 | $6.31 | $3.319M | 523.1K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 17 | 4896 | $6.32 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.33 | 16709 | 28 |
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| Last trade - 12.04pm 17/07/2024 (20 minute delay) ? |
| LYC (ASX) Chart |