The shorts were correct and will buy in the entitlement offer to return shares. I think that the huge short position will be the only aspect that lets the new stock issue get away at 94c.
It is more than likely that the underwriter has a huge block of those shorts to be able to underwrite at 94c.
Net debt increased by $40m for the year so the dividend in first half funded by debt mostly. Business has been going downhill for years with cashflow and profit both falling.
40% more shares and no dividend would see this fall more than to 94c without all those shorts, so someone was betting on a cap raise and won. If it was the underwriter, then how can this not be insider trading??
One thing is certain, someone has bet big on this cap raise happening. The interesting question is how far would it fall if there was not a 22% short position?
MYR Price at posting:
$1.21 Sentiment: Sell Disclosure: Not Held
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