I am novice and need some assistance in the event that a capital raising is iminent.
Through this recent growth in stock price I have found myself with approx $800,000 in Goodman shares after an entry at 14.5cents.
If we have a 1:1 capital raising and I am required to buy my 1.5m share allocation at say 44 cents or $660,000 I must admit that I do not have that sort of money lying around right now as I am sure is not the case with most of you!!
Anyway I understand the concept of dillution so must participate to hold my position. Say I had $400,000 of cash to put into the discounted offering what should I do to bridge the gap. Should I: a) sell some shares at this price to increase my cash base and ensure that I have enough cash to take the entitlement?? b) or will there be an option to assign my rights and pick up something for these?? Does this happen...
As you will see I am a novice in share trading and only bought GMG as I have competed against them so many times in development to know that they are good at their game just perhaps got a little big for their boots, like everyone did!!
Any advice would be appreciated.
GMG Price at posting:
49.0¢ Sentiment: LT Buy Disclosure: Held
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