Hunterr, you are right that not everyone will take up their entitlements.
But this is quite normal.
I bet you that in every CR for every Company on the ASX, there will always be shareholders that will NOT take up their entitlement, or maybe some will only take up part of their full entitlement - but this doesn't mean that this type of CR will always fail as you claim.
What you have missed in your post is that oversubscriptions will be accepted, and you only need a few holders to do the heavy lifting.
They failed to complete the CR at 1 cent, but if you look at the announcement, there is a commitment for SIs to pick up any shortfall. IMO, Merchant would have negotiated this in advance prior to the CR being announced to the market. So, I think that they should be confident about raising the funds, in order to progress forward.
Yes, the CR is not underwritten - I never said it was underwritten.
What I did say is that any shortfall will be picked up, which has the same effect as an underwritten CR.
GLTAH.
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