Ann: Mesoblast Completes Institutional Allocation, page-211

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83 Posts.

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10/12/23

09:17

Post #: 71367740
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Originally posted by Lopez: ↑

Shorters have won again. Poor deal structure for existing shareholders, particularly those in the US who didn't get an opportunity to participate in the retail entitlement.Shorters are in the process of buying back in at record low prices. The pressure on the share price is because there is effectively a free call option for Aussie retail holders for the next 2 weeks. You can sell your stock on market today at a price above 30c and then sit back and wait to see where the price is before you need to decide if you take up your 1:4 entitlement at 30c. You guarantee you make a cent or two by selling at today's price, and you can decide not to exercise your effective free call in two weeks if the share price is below 30c - in that case you could buy back in the market cheaper.So for the next two weeks the price is likely to trade around the 30c mark.The deal is "non-renounceable" which means you lose any entitlement if you don't take it up. For a "renounceable" issue, the company can sell your entitlement shares - often instos will step in and build a book of demand at various prices - if the book goes off at at premium to 30c then you (the original shareholder) get the difference over 30c - BUT that is not happening in this case. Some shareholders won't want to throw more money into MSB even at 30c. In a non-renounceable issue, they have every incentive to sell stock in the market now above 30c, and then make a decision later as to whether they replace it.So it's a shortfest.

Not impressed like the rest of us.

Aloha.

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@Lopez,

Continuing our previous discussion. Shorters definitely won. Positions gone from 8% of the company to just over 2%. Share price under the offer price. Disappointing but predictable.

MSB Price at posting: 28.5¢ Sentiment: Sell Disclosure: Not Held
3 Upvote

0 Great analysis

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