@MarsChttps://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12308036This was an article from a month or so ago where the CEO was (quite rightly) lamenting the low SP. It was sitting at about 60c/share on the NZX at that time.
If they attempt a discounted capital raise with the current SP less than half what it was when Martin was describing how insanely low it was - it would be very interesting to see what his story is to justify it.
And given management don't have any real skin in the game (something that has been a bit of a concern for me for a little while now) it is hard to trust that they do the best thing for shareholders and not just the easiest thing. Martin has 200,000 shares that were gifted to him. I don't think anyone else owns anything substantial.
So if they did a discounted rights issue of 1:1 at 20c, Martin would need to come up with $40K to fully participate if he wanted to. That is probably about two weeks wages after tax for him.
The other execs don't own any shares - so wouldn't have to pony up anything. The CR would be a lifeline to the business in terms of getting their hands on a bucket of cash they don't have to pay back and would not impact any of them directly. Sure, many existing shareholders could get screwed...but these are unprecedented times etc. Or so the story goes.
So it will be interesting to see what they do here. Management will always say they have the interests of shareholders at heart...but do they really?
I have been very supportive of new management in their initiatives - and continue to cheer them on. I just hope they don't disappoint me - I am all for learning lessons. Just not expensive ones!
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