NWE 0.00% 5.6¢ norwest energy nl

Ann: Rey becomes cornerstone investor in Norwest Energy, page-5

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  1. 784 Posts.
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    "Cornerstone Investors" are usually large institutional investors or well-known individuals to whom shares [of an IPO] are allocated [under the placing tranche at the IPO price] to signal to the market that [the IPO] is a trusted investment and is worthwhile for other investors.

    Rey is not what I would call a large insto
    Nor does it fit the bill of cornerstone investor
    Rey itself is cash-strapped looking at its last quarterly activities report

    I didn't get the signal.

    Seems we are really getting down to the bottom of the barrel now, so what does NWE stand to get from Rey exactly - it's not obvious at the minute. But Rey get their shares at c20% discount to the market.
 
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