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eternit

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18/03/16

06:37

Post #: 17306329
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Originally posted by Last of the Mohicans ↑

Alterego1168,

Yes they are going to place 25 to 50 M shares, that is a mere 1 to 2% of the enlarged market cap following completion of the re-listing.

The minimum price the cap raise can be at is 2 cents (see Chapter 12, page 22 & item 80 in the notes to it). The share price when that 2 cent raising news came out on 8th March was just 1.3 cents.

They'll get many offers for those placing shares and I think you'll find they end up being issued at a price very much closer to the market price at the point the stock stops trading ahead of the relisting, than at 2 cents.

However they can't put a firm price on it now because it needs shareholders to approve the deal first of all & they have no idea what price the market decides the company is worth. The only certainty is that the 2 cent rule has to be observed.

If I knew I could get as many shares as I wanted at 2 cents, I'd want to buy as many as possible, given the current share price and the tiny dilution it will cause, massive instant profit. Everyone sees the same thing & would want to do the same, but 50M is the max that's going to be offered, I suspect in the end the minimum number will be issued 25M.

If you truly believe that somehow you're going to get a nice piece of the action at 2 cents & all of us aren't, then please carry on waiting. However don't dare come back complaining if you're dream goes unfilled & the share price has left the station, when you try & buy a ticket to board it.

LOTM

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Hi LOTM, I am just wondering if there is a max limit to what price they can do the cap raising and at what time can they make that decision? Will it be when the prospectus comes out?

SYT Price at posting: 3.1¢ Sentiment: Buy Disclosure: Held
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chart discussion, page-179

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