The problem with these issues is that you can go on market and get the shares at next to no premium and the company gets no cash unless you take them up.
So buy on market today, hold until ex and then you can decide if you even bother with the miserable extra which is what the company gets the cash from. there is so many small holders with miniscule holdings that it will be interesting to see how many bother to send in tiny amount of cash . that is unless the price moves significantly but by the look of the market it isn't on fire..
Then you have the overhang of SI shares who have instant access to shares and sell into any profit on the screen so they can roll money into next SI offering of which Patts always have on the books. SI have no loyalty and only good news is that ALT got their cash guaranteed but had to struggle if the delays are anything to go by. They don't play unless there is a instant margin.
If no shareholders take up the issue because it is such a small amount and not in the money then ALT won't raise all the cash unless they offer the leftovers back to Patts or SI again at the end and that could drag on like it has for RHT for 90 days. There is better way including free options to keep retail holders loyal and get money in but that doesn't keep SI and Brokers happy in the $ and some companies just aren't mature enough to do it. So ALT share price will be a traders delight for a while till they get bored and the overhand is gone. Distraction not really needed and bad that ALT saw itself as no other choice to raise.
ALT Price at posting:
3.4¢ Sentiment: None Disclosure: Not Held
