The SPP as well as the placement is underwritten and so VHT is guaranteed of getting the full amount. Of course, the underwriter gets a very nice fee but should there be a shortfall which they have to take up, they will sell into the market at some stage and in some way or the other. I think that VHT has done very well in arranging an issue at this price in the current market and that demonstrates a good degree of confidence in the company. I am not intending to participate in the SPP and it will not surprise me if the SP goes backwards some more. VHT was smart enough to latch into the bounce back over the past few weeks but I consider this to be a fool's market with more strife to come as the economic impacts of COVID-19 start to bite. Today's fallback in companion with the general market as a whole simply illustrates that VHT is subject to overall market sentiment.
VHT Price at posting:
$1.27 Sentiment: None Disclosure: Held
