GEM buy?, page-227

New shares proceeds goes to the company. secondary sale of shares goes to the shareholder.

It is important for the shorter to create the uncertainty and reduce the price before the settlement to the capital raise price. so that people dont take up the entitlement the company capital raising is not successful - in this case it will be as the offer is underwritten.

in the case where the capital raise has strong demand, the price will bounce back quickly. If not, due to the fact that the current price is trading at around or below the cap raise price, the cap raise demand is uncertain as people can just buy in the market.

It is vital that the current shareholders buy the shares from the company not the secondary market to ensure that the demand is high and the shareholders and behind the company. this will super charge the share price recovery. otherwise the shorter will take it down to 30c and buy back.

It is now up to the shareholders.