. It is often the case that sophisticated investors are mates of...

. It is often the case that sophisticated investors are mates of the companies seeing to the SP
They phone up the guys who have big dollars and want a good deal. they don't even have to be holders.
The rest of us get the crumbs. So....while they get to buy all they want for 5CTs....you and I are offered 1 for every 5 we already have, many at much higher prices.
Those who picked them up when they rocketed from 1.3 cts are laughing.

In my opinion, the directors could have offered a 1 for 1 issue and they would have got the entire amount away....and raised 7 million instead of 5.