I'd say/guess the trading halt has something to do with this;
CSD has agreed to pay the Underwriter a total underwriting fee of 6% (excluding GST) of the value of the amount underwritten, PLUS as well as reimbursement of expenses.
So 6.6% plus say 4%, so a total of over 10.6% discount to the 12 cps raising. So the underwriter gets shares equivalent to 10.7 cps. 22,238,892 ordinary fully paid shares not looking at the options, so a cost they have to cough up of over $2.4 million and are not going to be able to off load them at current price.
Who ever over at RM drew this deal up, they must be getting torched.
The concern is how are they going to off load 22 plus million shares when the volume on Friday was under 300,000? And if they sell them at market at a loss, is this deemed an expense?
CSD Price at posting:
10.3¢ Sentiment: Sell Disclosure: Not Held
