Ann: Trading Halt, page-151

Spot on blazer 77. If a company is on the slide, even an institutional CR won't stop the sp falling to the placement price and sometimes even lower because of dilution and negative sentiment about the company in the marketplace. However, PLS has momentum and despite the recent sp pull back, the upward trend is still in tact. In my experience, this bodes well. I'm talking about companies I've held in the past that had momentum and institutional placements did not result in a lower sp. Indeed the CR was perceived by the market as an endorsement of the company with the sp rising as soon as the company came out of the trading halt, not falling. Specifically, I'm referring to Mt Gibson Iron & Fortescue, when iron ore was hot; Bow Energy and Queensland Gas, when CSG was hot and Sandfire (SFR). The sp would immediately rise after the placements even though the Institutional CR was typically at a discount of 15-20%, not dissimilar to PLS's CR. Indeed the $10M injection will allay any fears about the company's solvency/funding arrangements in the immediate term, which can only be positive for the sp.