Good Post. The same is happening with A1M right now. 60c and an offering at 52c- a necessary evil
All I can add is that Retails is Retails biggest enemy - and there is no lack of evidence to support this.
Lifecycle of a SPP 1) SPP announced with 10% discount 2) Retails arbitrages - sell above SPP price to buy at SPP price. This is done with fine efficiency - before lunch. 3) Stagnates for 2 days (any buyers are SPP'ing so no on market buys are happening) 4) Price drops 1 pip below SPP price due to this lack of buying support 5) HC users are bragging about buying 1 pip cheaper. 'Why would I buy at the SPP price - when I can buy cheaper - hahaha' 6) SPP Closes undersubscribed
This happens over and over and over. Happy to list a few dozen examples.....
I would be the advocate of supporting the companies we invest in. If we all did that, these CRs wouldn't happen as often. I'm expecting a large SPP for one stock I hold and have already set the maximum allowed $ aside.
If you want to see a clever raise - have a look at RAC - loyalty options. Short 6 month options issued through a rights issue that are in the money, and not listed. They can be traded, but are worth $, and therefore they will all be exercised, filling the kitty. Upon exercise a new 2 year Loyalty option is issuedat a higher price.
Disclaimer: I have just come across this stock, my REE knowledge is poor, other commodities I can handle. This stock seems complicated and the MC doesn't seem to make any sense. I also lack the Time commodity but will take a deeper dive on weekend.
CUF Price at posting:
1.4¢ Sentiment: None Disclosure: Not Held
