Perhaps Elph are hoping that they can pick up a lot of the shares from the recent 26c capital raising from shareholders who are unhappy that the sp dropped below the issue price and now would like their money back.
It's a clever strategy given the business appears to have now turned the corner and the sp is still very depressed by the capital raising and the current very risk adverse market. They have probably correctly picked the bottom and are having a try at getting control at a bargain price.
CXG has net tangible assets of 29.9c per share and any bid for control should be something above this. I would have thought that 35c would be a starting point? I don't think they will get their 35%, but perhaps this attempt is just a starting ambiet bid and they will increase the price to get it over the line?
Should we be expecting the directors to provide any recommendation or comment to shareholders?
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I am not an advisor. The comments are for debate only
Perhaps Elph are hoping that they can pick up a lot of the...
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