Solid result from Tassal but I’m disappointed at the way the...

Solid result from Tassal but I’m disappointed at the way the raising of share capital is structured. I guess it’s fairly common these days to make an underwritten placement rather than an underwritten rights issue because the placement can be done quickly and as such there is less risk to the underwriter than if they had to oversee a rights issue over a 3 to 4 week period. With less risk the underwriter probably charges less of a fee for the Placement option.

However from a shareholder perspective I’m being diluted by the issue of these new shares at a significant discount to market to outside investors. The main winner would seem to be management who might achieve bigger bonuses by growing the company at lower cost.

Sure I can apply for $15k of shares, but that might be scaled back and under a rights issue alternative I might have been entitled to more than $15k worth.

So while its common practice these days I’m not sure it has more advantages for management than it does for existing shareholders.
Hopefully the prawn business will also prove lucrative. Just wish that as an existing shareholder I'd been given first option to finance its expansion.