Ann: Trading Halt, page-256

My gumboot take on this CR is that markets (made up of 'people') will just do what markets do, ie. behave irrationally whilst jacked-up on emotion and reading interweb chats. At COB yesterday IMU had 5,003,025,244 shares issued and 'the market' valued the company at AUD$1,650,998,331. That's $0.33c per share.

Since then (during this trading halt) the AFR is reporting that IMU is likely to issue 283,333,333 new shares at a price of $0.30c each. That would bring in AUD$85,000,000 to the company. If $1 in cash is worth $1, it suggests IMU should be worth $1,735,998,331 after the CR is complete (ceteris paribus) and have 5,286,358,577 shares on issue.

Dividing the former by the latter suggest the share price should readjust (when the market for IMU shares re-opens) to $0.328c per share. That's the maths. That's the theory.

In reality, people will see this as either +ve or -ve depending on a whole range of subjective criteria that are important to them.

It's not a linear thing. Do what works for you.