Clearly what happened was that the company issued the placement (at $100m) to the institutions and they oversubscribed to over $120m at which management (probably Chis Wilks) said they should take a "bird in the hand" and this upped the placement to $120m but still had an obligation to the SPP (at $20m) but they had all the finds needed from the up rated placement. Then reading between the lines the institutions felt that they had overbid (they obviously felt there was going to be a scale back) and then "dumped" their surplus on to the market (their clients probably did the same) thus pushing the market price down. The lower market price then meant the SPP was "under water" and was thus likely to be a dud - but the Company also had all thew money it needed (in the first place i.e $120m). To me they pulled off a blinder and gave us long serving retail shareholders a chance of a bargain.
SLX Price at posting:
$4.23 Sentiment: Buy Disclosure: Held
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