The more generous the entitlement the more pressure on the sp just after going ex as the dilution effect is heavier and there more room to sell down and still make money on the offer. Same thing happens when the new shares list, people just take profits, simple. Free option is attractive but to trade at .004 sp needs to be .016, been there lately? Things are setting up well but the price will fall ex entitlement, just the nature of the beast
Ann: Fully underwritten Rights Issue to raise $1.4 million, page-22
-
- There are more pages in this discussion • 16 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
