It has been the rapid increase in fertiliser prices that drove the share price from 10c through to 17c over a very short period of time (~2-3 months). What price would be expected for a cap raise to be at? What was the fair price given the price ran so hard? Noting that it is a fairly low capex project and there shouldn't be massive future dilution. It seems counter intuitive to issue a CR at 10% discount to eg 10 day VWAP for a stock that has run up on (potentially) shorter term macro factors and speculation. However a fairer CR process would have been an SPP offer at 10cents to give holders the right to help mitigate dilution. That should be the ask of management.
MNB Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
