If you take up your entitlement to buy shares under the capital...

If you take up your entitlement to buy shares under the capital raising at 50c per share you provide additional funds to the company to ensure that they are in a position to meet the demands of the market head on. That is, part of your money will go to upscaling production so more product can reach the market in a more timely fashion


If you buy now at a price under 50 cents you simply take the shares from another person and the company gets nothing for it. If you've bought 10,000 shares at 49c you save a hundred dollars. The company doesn't get your money so it can't increase production and is not in as good a position to meet market demands.

So effectively you can choose to buy a share in a company at a discount of 2% which may then put the company in a worse position to conduct its business??

Please tell me if I'm wrong about that!

Rev