I guess it can't be cheap for a small company to do a capital raise. That's why in the past they have tended to screw over retail shareholders entirely and just raise money from instos via a placement. They are probably trying to make the most of the raise although with the market tanking I doubt they will raise much at all from retail. More capital means more flexibility to be able to do further opportunistic acquisitons although I suppose they have their hands full with the recent buys.
I guess this announcement rules out an extension and a fresh 5-10% discount then. Qantas didn't give any further discount, but did extended the offer by another 2-3 weeks and still 94% of shareholders didn't participate in the SPP. You really do need to offer a good discount to entice shareholders to hand over more of their limited capital.
FDV Price at posting:
$1.24 Sentiment: Hold Disclosure: Held
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