Well, I think so...but not because of the 12c/share offer price.
I think people have been fooled into thinking that 12c/share for the new shares represents a 68% discount to the closing SP on Thursday.
Don't forget, the ratio of new shares for the offer is 1: 2.83 @12c. That would be exactly the same as if they did a 1:1 @ 34c (which is pretty much where the shares have been trading pre-offer).
So I think this is a 'clever' way of structuring the capital raise by management to maximise how much money they can raise given the low SP. The offer is not really discounted at all.
Be that as it may, an offer price that is the equivalent of 34c/share I still think is cheap. Regardless, if I did not participate in the capital raise I would be diluted to oblivion - so there is no other option but to participate really.
SKT Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
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