I'm aware of the "catch all" clause that's standard for this sort of thing, it's designed to pick up on potentially other issues in addition to selling existing stock to buy back at a cheaper price by participating in a SPP.
It's difficult to enforce & does go on - I don't condone it because its not in the spirit of the concept (of an SPP) however can't really blame people for doing it.
They (the Companies & ASX) try to minimise the risk by announcing SPP's on a given day thus only limiting it to those existing shareholders as opposed to a date in the future giving time for traders to come in muck around with it.
But really...if I decide to sell on the day of the announcement then participate 2 weeks later in the SPP how could you prove what my intention was??...I may have needed the money for another opportunity then decided to go back in under the SPP.
The flip side to this is once the shares are issued under the SPP.....people are free to sell them into the market at a potentially higher price & there's nothing really stopping this.
It will keep a lid on the share price for a little while but it won't be sustained....I noticed at the time of writing this that the gap between BAR & CNJ has closed quite a bit.....it's currently at 0.005 cents when historically it's usually around 0.013 - 0.014 cents (sometimes higher) so there is your proof.
Another few pips up on CNJ they will be almost even so the market is saying the Gold Assets BAR holds aren't worth very much based on respective Market Caps which of course is ridiculous.
As usual DYOR....above is IMO.....and you could potentially get caught (that is rejected by management) for washing if you sell then buy back under the SPP.
Cheers
BAR Price at posting:
5.2¢ Sentiment: Buy Disclosure: Held
