Well it is now very clear why the SDL share price has been in a down trend.... management raising 60m capital @ 40.5c when the weighted average for the last 3 months is probably closer to 47-48c.
Explains the lack of institutional support of recent days.
It seems as they have been more concerned about the amount of cash and not the effect on :
a) existing holders b) short term stock price and therefore all shareholders
When I see management bending over and taking the offer price at around 20% below the recent market average it really gets on my nerve.
Also this raises questions as to how management are going to behave should a long term offer appear in the next few months.
Are they going to bend over once again and take what ever is offered or is there going to be some seriuos negotiations occurring.
I am having doubts that current management are capable of squeezing the most out of this process.
Thumbs up to "Thank" (not) management for leaving out smaller shareholders from this raising.
Now before you start, clubbing these comments, I realise that this will assist in providing / proving up larger resources / reserves and therefore command a higher value for any partner / off-take agreements !
I particularily like westcot's comments about some prospects near to port that may come under the control of SDL ...
