key entitlement offer & uk acquisition?, page-5

RAW, you criticise the company as you believe there will be a shortfall requiring a private placement to make up the difference then you state that they should have done a non-renouncable issue.

You do realise that a non-renouncable offer would not have ensured that there would be no shortfall. Plus those that can't afford, or don't want, to take up their entitlements would be worse off as there'd be no opportunity to on-sell their entitlement, thus meaning those entitlements would be lost to the individuals and the company. Going on the rights trading that would mean that a minimum of 1 million rights would not be exercised if it had been a non-renouncable issue.

Also, given the size of funds required, a placement for any shortfall could likely need EGM for shareholder approval.