importance of rights issue

Now, I am still surprised that nobody has read between the lines. 1c for an option with an ex-price of 10c . That means a total sp of 11c !!!!!!!!!!!!!!!!

I have only seen it once ( PRR ) that a company offered new shares / options higher than the current price. Everyone was laughing about that but soon later news were released and the sp has multiplied.

The board must be very very very confident that sp will be above 11c by the end of next year, otherwise the whole issue doesn't make sense. The issue coincidences with this weeks news, therefore we have to reasons for that :

Either they released the news to get this issue through and hoped for a sp above 11c or they have already analysed the gas flow and know that investors will push it up above 10c once the rates are released to the market. Assuming that the WHN management is not stupid, the answer will be extreme high flow rates and more to come.

When other companies did their cap rising they issued gazillions of shares for a huge discount and mostly they sunk. WHN offered just few options, only a small dilution of extra 25 % ( assuming all oppies will be converted by the end of next year ).

This is going to be a hammer stock and if the anticipated workprogram plus the good news will go ahead as planned, then sp will easily reach 20c.

Build your house using the bricks the other ones throw at you, that's the smart thing to do.