Hmmm... 44 cents is disappointing. I can't see myself taking up the amount I might be entitled to in the $3mil entitlement offer, so I'll be diluted.
However, it says: "this communication relates only to the placement and does not relate to the entitlement offer". So I imagine when the communication for the entitlement offer is released (probably just before the trading halt lifts), that it will include a statement saying all of the board members will be increasing their holdings. They'd be silly not to at such a cheap price and they're expecting all of us to... If they don't, we know that they are not thinking of the big picture but rather their immediate salaries and this will be telling on their belief in the product.
I can hear one of two scenarios buzzing in the minds of the management -
1. The results are filtering in, we know what's in store and we are proud to be offering this value to our loyal shareholders who will benefit greatly very soon.
2. At least we've achieved another 6 to 12 months good salary out of this.
RCE Price at posting:
65.0¢ Sentiment: None Disclosure: Held
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