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07:08
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Originally posted by bm3121
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So our share price for DGR goes down 13.3% from 7.5c to 6.5c when able to be traded today, with possibility of more falls down to around the 4c while current shareholder sell shares to pay for their cache of new share entitlement. All to raise money to help DGR's subsidiary daughter companies and provide funding to establish and list new companies. And SOLG and Cornerstone share values have risen between 100-150+% over the last two weeks. Be assured our BOD have for last month or two has been formulating this capital raising prospective and now places new shares at the 50% discount to DGR's share value of 7.5c per share . I looked up the amount and price of DGR shares sold over the month before the 24/4/20 and yes average was around the 5.6c and the 33% discount brings it down to the 3.7c as per capital raising. Have a look at the number of shares traded during this period....it might surprise you......not very many to justify such a discount. Could there have been manipulation over this period to ensure a low price for capital raising?Yes, as of today, the shares you held to close of ASX (apparently 7pm is when official change in ownership occurs) holders will be eligible to new share entitlement (x 1/4). If you bought shares today, you will not be eligible for new shares. It is therefor likely that our current shares will drop dramatically until CR completed. For those that think you can pick up additional new shares I suggest you read prospective (refer age 23 of Prospectus Doc). It is repeatedly stated that it is at the absolute discretion of BOD as to allocation of not taken up new shares to whoever they decide, including not to any eligible shareholder who has applied for more, and including other parties who hold no shares whatsoever (refer page 23 of Prospective doc). You can imagine Mather giving away his new 3.7c shares that were not taken up by eligible shareholders when he could have them all. So don't expect a lots of extra new shares.Is this a partial takeover by stealth. There is one party who is certainly going to make considerable gains from the CR and it's unbelievable timings. The vast majority of shareholders will still have the same interest in DGR and subsequently in SOLG.So many posters on this discussion thread have written concerns regarding this CR. Please continue with telling us your thoughts now that we all had time to reflect. I am so worried that my investment in DGR will fall off a cliff. The world economy is on the brink of collapse and in one months time, what might our shares in DGR be worth if that occurs.
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I'm seriously wondering if the long game is to take DGR private. If that is the case the last thing in the world they would want was an appreciating SP.
