They are tipping in 25 million its supposably fixed at 9 cents. Until the deed is done that will be 25 million compared with our current cap of 92 million. So share wise you are absolutely correct. I am not sure about the actual cash values will mean at the time of transaction or if it is purely based on number of shares. Once it goes through though Oaktree will either lose 30% of their investment immediately or the share price will jump significantly due to the increased average price of shares issued, but Oaktree still lose. I just can't see Oaktree accepting the loss, so wonder what else is in play.
SP of greater than 9 cents will make any anxiety disappear though! When companies do a discounted capital raise the SP generally falls to that value, will the opposite happen to us?
EQR Price at posting:
5.9¢ Sentiment: None Disclosure: Held
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