"If BGS report good drilling results in the first campaign, it will give the sub-underwriters from the capital raising a chance to cash-out their shares, but the sheer number of shares that they want to get rid of means that any good drilling assays will only result in minimal share price appreciation (at best), because the capital raising allotments will soak up any gains and hold the price down."
In other words the underwriters win and new shareholders lose.
BGS Price at posting:
0.7¢ Sentiment: None Disclosure: Not Held
