What's the logic that it will drop to 9c?Reality is greater...

What's the logic that it will drop to 9c?

Reality is greater confidence after main shareholders, directors and brokers all underwriting the placement (i.e if no one buys into placement or takes up entitlement, these 'underwritters' have already agreed to buy the whole lot at 9cents).

That's a pretty big signal that 9c is rediculously cheap for these shares. Bell Potter don't underwrite many stocks so to have them onboard is saying a lot.

The last placement Bell Potter was underwritter on was for vision eye institute (VEI), that placement/rights issue was at 34cents, and share price rose immediatelty and had recently been as high as 99cents (69cents as of today).