did shorterd also get the placement

Wondering if most of the recent placement (or a large percentage) were taken up by institutions that were also shorting LYC.

Having a short position then purchasing the shares on the placement is a guaranteed way to close out the short position at a profit since the placement are always at a discount to the last traded price. After the shares get relisted then these very people short the stock again. The cycle starts again except the fall is made worse. The company does not care short term since it gets money in the kitty.

Spoke to 2 institutional brokers who said the same thing happened with Gindalbie as well. This explains why there was such as fast take-up in the institutional placement. There are some who also genuinely purchased the shares as a hold and hence "hoodwinked".

If this behavior is true then this is definitely an issue to look at.

Wondering if ASX can trace down institutions that had an open short position at the time which also took up the discounted placement.