I thought it is logical that when management thinks the SP is high or possibly overvalued that it would benefit existing shareholders immensely to do a placement to outsiders at high prices.
Conversely, if management thinks the SP is too low or undervalued then it would benefit existing shareholders if a rights issue is done.
There is also a further consideration of speed, costs and the uncertainty involved in doing a placement as opposed to a rights offering. On top of this, based on my understanding, if a company exceeds $100m in revenue per annum, then they can only raise 15% instead of 25% without shareholder approval, and AMA is on the verge of exceeding $100m of revenue per annum. Doing a lengthy rights offering might mean that they cannot raise as much as they did.
In my humble opinion, especially based on what Ray Malone has done over all these years, I may be inclined not to judge him too harshly on this placement. In actual fact, I actually applauded the move as a very good one, especially if you consider the Greek and Chinese market moving events immediately after the raising.
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5.2¢ |
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Mkt cap ! $93.93M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 32074 | 5.3¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
4.7¢ | 210000 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 32074 | 0.053 |
1 | 10639 | 0.052 |
1 | 17647 | 0.051 |
4 | 450000 | 0.050 |
1 | 20000 | 0.049 |
Price($) | Vol. | No. |
---|---|---|
0.047 | 200000 | 1 |
0.050 | 300000 | 1 |
0.052 | 442340 | 2 |
0.053 | 757057 | 2 |
0.054 | 100000 | 1 |
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