morley,"To me, any company that makes an announcement that...

morley,

"To me, any company that makes an announcement that causes the share price to fall 63% has managed things very badly - even if it is just in communicating the reality of their position to shareholders."

there is some validity in what you say. and i feel sorry for those who have to capitulate because of this development.

but in this case, although i have been disappointed with this capital raising and the share dilution, i think the company has been honest, which is better than 'managing' its communication to prop up its share price. it's worse when they are 'managing' it to off load their shares. but in this case they will take up their allocated rights.

as far as i can remember the company has made a loss every year. so the existing shareholders should have known the (diminishing) value of the company without having the management telling them of the fact.