Cannot imagine whey a large uptake in the raising would be considered advantageous to existing shareholders. It will create dilution. The funds raised are to be used for Working capital requirements.
To benefit shareholders the funds raised from a Capital Raising should be put into a productive endeavour, such as, plant and equipment, aquisitions etc, not day to day expenses.
Alarm bells should ring whenever the stated purpose of a Capital Raising is for Working Capital requirements. Such raising are not for the benefit of shareholders, rather the benefit of management.
AEV Price at posting:
52.6¢ Sentiment: ST Sell Disclosure: Not Held
