I thought it is logical that when management thinks the SP is high or possibly overvalued that it would benefit existing shareholders immensely to do a placement to outsiders at high prices.
Conversely, if management thinks the SP is too low or undervalued then it would benefit existing shareholders if a rights issue is done.
There is also a further consideration of speed, costs and the uncertainty involved in doing a placement as opposed to a rights offering. On top of this, based on my understanding, if a company exceeds $100m in revenue per annum, then they can only raise 15% instead of 25% without shareholder approval, and AMA is on the verge of exceeding $100m of revenue per annum. Doing a lengthy rights offering might mean that they cannot raise as much as they did.
In my humble opinion, especially based on what Ray Malone has done over all these years, I may be inclined not to judge him too harshly on this placement. In actual fact, I actually applauded the move as a very good one, especially if you consider the Greek and Chinese market moving events immediately after the raising.
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Last
5.7¢ |
Change
0.000(0.00%) |
Mkt cap ! $272.6M |
Open | High | Low | Value | Volume |
5.7¢ | 5.9¢ | 5.7¢ | $3.288K | 56.90K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
8 | 942794 | 5.7¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
5.9¢ | 69931 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
8 | 942794 | 0.057 |
14 | 1313141 | 0.056 |
4 | 520276 | 0.055 |
1 | 18537 | 0.054 |
2 | 118800 | 0.053 |
Price($) | Vol. | No. |
---|---|---|
0.059 | 69931 | 1 |
0.060 | 414000 | 1 |
0.061 | 964928 | 4 |
0.062 | 510645 | 4 |
0.063 | 384468 | 4 |
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