It is a mystery to me why asx spec stocks continue to do these rights issues with free attaching options.This almost guarantee that the sp will drop to whatever the offer price is.Heres why.if your entitlement under the offer is say 1000 shares at 1.1, it leads to shareholders selling that very amount of shares on market at that price or better if possible, and then buying the same amount of shares back in the rights issue plus getting the attaching oppies for free. These type of rights issues can only put downward pressure on sp, better off not including the options I reckon.heaps of companies do this and it's always the same result,a drop in sp.
MNM Price at posting:
1.1¢ Sentiment: Sell Disclosure: Not Held
