Ann: Trading Halt, page-97

Hi @Tradergimp , and if you look back at where the conversation started it was in response to a poster saying that it would be less dilutionary to cancel the rights issue and go with a placement to a cornerstone investor, which is mathematically incorrect as everyone other than the cornerstone is diluted by this process.

So every time you have a placement to sophisticated investors or cornerstone everyone whinges about being diluted by the sophisticated investor, in rights issues you don't get diluted but you have to put your share of the money in or you get diluted. Basically it is up to you to decide whether to put money in or not.

Problem with rights issue is the time they take and the fact that SP can often fall below rights price, so why take them up when you can buy them on market cheaper. Current TON predicament is one example, but don't have to look far to see other recent examples of this.

So it may be better to do a placement but it is certainly more dilutionary to existing shareholders who don't get to participate.