Thanks for this explanation ozblue. Wow that would be a slam dunk for the shorts if that was the case. But if I was lending out shares I don't think I would allow such a clause in the contract, so I'll be interested to see how this goes. If the short position magically evaporates after the institutional part of the cap raising without any on market buying then you will have nailed it with the explanation above.
I can understand why the institutions would lend out the shares, i.e. to earn extra income from the fees. On the flipside, their performance will be negatively affected by the shares going down in value due to the lent out stock being sold. But if it were me I would want to reserve the right to participate in capital raisings. Would love to get my hands on one of these shorting contracts to analyse the mechanics and what can and can't be done by both parties.
Trading halt should be off tomorrow lets see what happens.
All imo dyor.
MYR Price at posting:
$1.21 Sentiment: Hold Disclosure: Held
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