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clock Created with Sketch. 29/01/21
13:28
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Originally posted by BobF:
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If I was Fred - with 20% of the shares - I would not be wanting to raise cash by discounting the SP significantly. I would expect dilution would be a serious concern to all of the top 20 and other large holders. Why discount and dilute when the institutional or industry insider investors who decide to stump up some cash will be wanting to confirm and cement in the value of the company, not diminish it. Who would buy in if they did not already recognise the value they were contributing to? Let them pay for the privilege like the rest of us.
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I was thinking the same @BobF . Fred won't want to dilute his holdings too much, especially when there's a fair chance of a buyout/takeover down the track. Shares will also be hard to come by, so a cap raising might even be at a premium to the SP.
(20min delay)