I will call the company tomorrow and enquire as to the reason. I would assume the up-take is low, given the options had zero intrinsic value at the time of the entitlement/prospectus issuance. I subsequently sold my options prior to expiry on this basis.
Given Mr Atkins increased his direct interest, they may have an announcement that might infer some future growth potential.
With the current SP trading pretty much at BV (0.0691c/share) and with the market pricing little to no growth potential. This may well eventuate into a nice buying opportunity, assuming the company can realise some future value.
As an aside, I personally prefer the raising of capital via an options placement, as it keeps the capital structure tight. The problem is it may well be hard to convince investors to buy into the entitlement as it currently stands, unless there is potential.
AKA Price at posting:
7.0¢ Sentiment: Hold Disclosure: Held
