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
4.8¢ |
Change
0.002(4.35%) |
Mkt cap ! $229.5M |
Open | High | Low | Value | Volume |
4.6¢ | 4.9¢ | 4.6¢ | $534.7K | 11.33M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 500000 | 4.8¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
5.0¢ | 55097 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 500000 | 0.048 |
1 | 2000000 | 0.047 |
5 | 1632187 | 0.046 |
7 | 1567557 | 0.045 |
5 | 2667253 | 0.044 |
Price($) | Vol. | No. |
---|---|---|
0.050 | 55097 | 3 |
0.052 | 157390 | 2 |
0.053 | 240000 | 3 |
0.054 | 100000 | 1 |
0.055 | 767100 | 3 |
Last trade - 15.57pm 22/08/2024 (20 minute delay) ? |
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