My opinion is that ME knew that the SP would tank when the 500m shares were to be issued.
From the ann:
"FAR will fund its participation pursuant to a capital raising to be managed by Hartleys and the Agreement is conditional upon FAR raising not less than US$6 million."
US$6 million from 500m shares is 1.2c per share. - Nowhere in the past announcements does it state they need more than US$6m.
Over my years of trading I have seen this happen a few times. The price could be pushed down to a low price - in this case, the 3c region then the placement done at at a very low price (1.2c). Later then push the price up to 6c giving a 5 fold increase to the mates.
I now do not trust this management. They could have easily done the roadshow - got the price to 10c and only need to place 60m share for the same result.
Wilsde
500 million, page-31
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Last
50.0¢ |
Change
-0.005(0.99%) |
Mkt cap ! $46.20M | |||
| Open | High | Low | Value | Volume |
| 50.0¢ | 50.5¢ | 49.5¢ | $44.81K | 89.66K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 65910 | 50.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 50.5¢ | 118070 | 3 |
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| Last trade - 15.42pm 21/08/2024 (20 minute delay) ? |
| FAR (ASX) Chart |