Did current shareholders really think they could buy stock in...

Did current shareholders really think they could buy stock in SPP at 10c and sell it at a 40 to 50% profit? Made a quick $15k on the SPP.

Did current shareholders really think that the share price would trade at a significant premium to the issue price of 10c after 2 billon (2,000,000,000) shares were issued?

This is not a must have stock. It's not some new tech with massive growth. The company will continue to shrink as more stores close and business units are closed. It's not a yield stock. The industry is facing some of the toughest times of late. So best case it's a deep deep value turn around play with significant risk that will take significant time.

Here's a theory. The underwriters will be paid some $14m. which before the recap is around 50% of current equity. The underwriters could have easily supported the share price by buying a few million dollars worth of stock to keep the share price in the mid teens to ensure the placement and SPP get done. They take a big loss on the stock they have bought as they sell it back into the market but overall have still make a killing. Looks like retail and current shareholders get screwed.

Will be interesting to see how this trades next week when an additional 2 billion shares hit the market. AIMO