This underwriting of DRP concerns me.As I underrstand it this is...

This underwriting of DRP concerns me.

As I underrstand it this is what happens:

(1) CEU gives the underwriters stock in CEU at the current SP to cover the DIV....ie 5.5c * the number of shares on issue.

It is in the interest of the underwriters to drive down the SP so that they can get more CEU shares.

(2) The underwriters sell the stock during the period, trying to get as much profit as they can...run to $1.40
(3) the div money is paid to CEU
(4) the underwriters get 5% fee
(5) CEU pays the div
(6) CEU issues new shares to the DRP holders....ie new shares were created TWICE....quite a bit of DILUTION...that is my concern

....is this correct?