More dilution. 45M shares at discounted rates with 15M free oppies. The cronies are looked after. The SHs are denied any opportunity to participate. Surely a rights issue is the fairest way to raise funds.
Moreover, there is no update on the 14/12/23 announcement of GPR's committed funds of $2.1M within 6 months. SHs are not transparently advised on funds provided by GPR, which is purportedly fronted by the convicted fraudster Michael Giovinazzo. Giovinazzo has his own battles defending actions in the Victorian Supreme Court that could see him ousted from GPR. With a judgment pending an unsuccessful defence will be harmful to RIM. This whole scenario stigmatises RIM.
I think we can expect more sideways and downward SP movement until the GPR matter is resolved. If it goes against Giovinazzo this placement may not be such a great deal for the sophisticated investors.
RIM Price at posting:
2.9¢ Sentiment: Sell Disclosure: Held
