Agree that share price will usually drop down towards the issue price and sometimes below as disgruntled shareholders sell stock due to dilution, not neing able to participate in capital raising etc.
In this case however it is giving all shareholders an aopportunity to invest at the lower price so less likely to sell stock held.
In order to get a placement of this size away I would think that CNM has a number of announcements pending / things up sleeve that enticed the bigger amounts on the private placement to invest.
So even though I believe the price will drop down to approx 10 cents in short term (maybe a bit below) some announcements before end of year / early next year could see a further revaluation to the upside.
Good luck if holding.
CNM
carnegie corporation limited
