If the company is considerate of existing shareholders (which I expect them to be) they will be prepared to accept more than $10m in proceeds from the SPP and borrow less in order to fund the acquisition.
After all, why should new investors (institutions) who have just come on board get to reap a disproportionately large chunk of the benefit from the re-rating of the stock.
This scenario of more shares being issued beyond $10m for the SPP will be detrimental to EPS, but IMO is equitable for loyal shareholders.
Massive Scale Back, page-4
Add AX1 (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$2.22 |
Change
0.060(2.78%) |
Mkt cap ! $1.249B | |||
| Open | High | Low | Value | Volume |
| $2.14 | $2.25 | $2.11 | $7.490M | 3.419M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 379 | $2.22 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.23 | 5780 | 2 |
View Market Depth
| Last trade - 16.10pm 19/07/2024 (20 minute delay) ? |
| AX1 (ASX) Chart |