Correct... now 20% discount to VWAP is actually very normal, so the insto is getting the two later tranches at a pretty standard price in terms of ASX Crs...
What is not normal is the first 6 million dollars (even if its for 6.5 million of stock) at an 88% premium...
in order for these guys to be ahead the price has to move up...
if the price moves down... they lose a huge sum even with their 20% discount on future raises..
lets do an example
say Sp stays at 20 cents, which is still higher...
They have 6.5 million at 32 (discount of 20% with the free half mil), so actual price is is about 25.5
They then have 13 million shares at another 20% discount (16 cents)
their average would be 19.16 cents...
so they would have invested 18 million dollars in to make less than 1 cent per share....
thats at a 20 cent share price with all discounts accounted for...
you understand why this should be much higher?
Maybe not 30 cents right away... but mid 20s... 100%
hope above makes sense... and if i made a mistake just let me know
- Forums
- ASX - By Stock
- Ann: Institutional Share Placement
Correct... now 20% discount to VWAP is actually very normal, so...
-
-
- There are more pages in this discussion • 67 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add NRZ (ASX) to my watchlist
|
|||||
Last
1.3¢ |
Change
0.000(0.00%) |
Mkt cap ! $24.73M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Featured News
NRZ (ASX) Chart |
Day chart unavailable
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online