"Don't see this as an immediate issue but if units were say 30 cents then they could go with say a 1 for 1 at say 25 cents just like GPT continues to do."
There is a huge difference in raising capital via a placement at a discount to an institution or a new investor, foreign or local makes no difference, than an issue to current holders. If the issue replaces debt or buys new assets there is often no need for dilution to the current shares. An issue like that increases the retained profit is an even benefit to the old and the new shares. A one for one issue lets current holders have the opportunity to share the result. If CER were to have dilution through a one for one issue it would add more certainty to the financing arrangements,would reduce the cost of debt and the SP would rise regardless.
However in saying that I believe there is no need for financing to take that step. (Maybe when the SP is back to $1 it would be a good thing to consider, especially with the asset backing it has.)Is it a possibile available avenue under the CER constitution anyway,I don't have the answer to that.
CER Price at posting:
8.0¢ Sentiment: LT Buy Disclosure: Held
