The scaleback is the real risk here. Imagine you're one of the fanbois here, and you have become positively tumescent at the prospect of buying 250,000 shares in the SPP, and send in your Mum and Dad's $30,000, then hold your breath.
In the mean time, Carna, Tumby, Mr Hamilton, and 743 hard-core HC cardigan-wearers all have the same lascivious thought, and also drop $30k into the SPP.
The SPP is over subscribed, closes early, and/or is scaled back so everyone who applied gets just 5,000 shares. You're left with a 245,000 share wet patch in your portfolio, and trying to nab that on market means you pay 14c, 15c, 18c per share...
If you were to nibble away for the next two weeks, you may well pick up your 250,000 shares on or around 12c, and be able to walk away engorged, even if you are not the proud holder of 125,000 options.
It really come down to how bad you want in, I guess.
The scaleback is the real risk here. Imagine you're one of the...
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