I don't believe you could do a CR at anything other than the VWAP discounts that 10c implies. A premium price is only achievable, IMO, if a strategic investor wants to take a material stake. I think this CR was all about Kathiravelu arguing that this was the last time they could go to the market for working capital. The argument would have been that there was no downside to buffering working capital (other than a limited 6% dilution). Conversely, going to the market for this reason in the future would have been viewed as an admission of failure as the acquisitions are supposed to be bringing in revenue/EBITDA.
So, IMO, they did it essentially because they could do it now (though probably not needed) as opposed to not being able to do it in the future if and when they definitely did need it. And 10c is about the price it had to be.
Anyway....that is how I am interpreting it.
GLTA
BUD Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
