Well...the placement to the inner sanctum of privileged friends with benefits and powerful voters on the register got me thinking about liquidity. Its fascinating.
The placement of 32.6 million shares at the astonishing price of 2.5cps represents 33 months of liquidity. That is since the Richardsons have been in control (Nov 2013), some 80 million shares have changed hands over the 82 months of their stewardship. That is not quite a million per month (971,628)
So issuing 32.6 million in a placement has taken 34 month of liquidity out of the market. The buyers are satisfied. Had they put shareholders first and had a simple underwritten rights issue, the those "NEW" privileged shareholders would not have secured anywhere near the 32 million they were given and unsatisfied demand would have been created.
We can only hope that the new investors and the new director push for a proper IR engagement.
EGL Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
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