Ann: Trading Halt, page-38

I do understand that and it is what happens most of the time .
However the current shareholders are the OWNERS of the BUSINESS and I believe should always get first dibs .
Credit raises are usually done significantly below what the Market thought was fair value before the credit raise was announced .
For sure if current share holders don't take up all the shares on offer place the shortfall to the Vultures .
It is surprising how supportive share holders will be if they think that Management have their best interests in mind .

A lot of Microcaps have no or little income and Capital raises are a regular necessity to keep the company moving ahead .
The SP is a function of belief in the business plan to make the business ultimately profitable .
The sentiment of share holders is critical to the success of the business .
If retail share holders feel they have not been treated well many will leave and the SP based on a Story and Hope will head down .

The management of some companies seem to think that share holders are just a necessary evil .
To be fair I do not think that the management of MEL think like that , however the present share holders have been very supportive at a great cost to themselves .