Screwing anyone who actually wants to invest in the growth of the company on the way.
Big players in small companies see the need for company to raise more funds. They have loads of shares and can then afford to lose a bit to drive the share price down - and keep it down. Then management knowing funds are required announce a cr at such subdued levels with discounts to boot. SOI blows out but big players will capitalize - already the fund provider is sitting on a tidy 25% profit. As to holders who held from earlier days when prices were 4-5 fold from current - as you say, already got screwed earlier and now royally. Easy money for some.
Not against a cr per se, company needs funds but in reports management indicated that there are some divestment opportunities - so why did management not look into that in preference to a cr at such low offering? Does management have all stakeholders' interests at heart - at a guess, no, no way - bear in mind that whilst they may have skin in the game, they also get carried along the way with reasonable if not excessive remuneration.
Even if they drill with some exceptional finds, it will take a mighty effort to get the sp to 2-3c - not sure how 'rapidly' that may occur, whilst the notion of the sp reaching 10c appear to have gone down the hole, dead and buried.
Meanwhile, the fund provider will make a tidy 3-5 fold profit - sure to be a lot of share flipping at 2-3c levels.
However, should results from drilling be uninspiring then moneys spent will probably need refilling again, with even more dilution. AIMO
SHN Price at posting:
0.8¢ Sentiment: Hold Disclosure: Held
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