I understand that. But whatever the SP, they will be progressively diluting current shareholders by 20% and for a buy-in price that represents a 25% discount to the prevailing share price. Why? What undisclosed need for funds is lurking around the corner? It is a big price to pay (for existing shareholders) for funds seemingly not required.
This monthly game is going to drag the SP downwards as a perceived 'overhang effect' of 67 million new shares a month at 25% discount will play a major capping role. Management are going to need serious and substantial news flow to capture market attention in the face of these types of pressures. My fear is that they lack the credibility track record to fight against the current of skepticism.
LWP Price at posting:
0.4¢ Sentiment: None Disclosure: Not Held
