If it drops below 7c some holders who otherwise would have, won't take up their offer. If the market crashes next week and the SP dropped below 6c I suspect most would not take up the offer.
Deutsche Balaton is underwriting up to 52% of the offer. They will pay 7c even if the market were to crash. That says a lot about their medium to long term confidence in the company's projects and should offer smaller holders some degree of comfort. If it drops to sub 7c then the number of shortfall shares on offer will most likely increase. Holders who truly believe in the long term success of the company can apply for shortfall shares and potentially get a lot more shares than their base entitlement.
All holders need to assess the risks laid out in the prospectus. Prospective investors should consider that an investment in the Company is highly speculative
ATC Price at posting:
7.1¢ Sentiment: Buy Disclosure: Held
