Correct, meaning that the minimum that the shares can go for is 0.4c, however it does not set a maximum range.
So if the Share Price shoots up to 3c then the SPP price will be based on 20% discount of 3c = 2.4c.
And everyone that has already paid their $15k thinking they will get 3.75m shares @ 0.4c, will actually only get 625k shares @ 2.4c...
Do you honestly think that the Top holders who have 75% of the company, are going to happily dilute their holdings at 0.4c?
Once everyone has paid their SPP, the $750k CR is secured... then they can bump the price to whatever they want to minimize their dilution.
I am more than happy to be proven wrong...
My original holdings were bought at 0.2c, and I have now topped up at 0.6c, as I believe it will be in their best interest to pump the price for the SPP.
Opinion only.
NIU Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
