The cash raising price is the result of extremely poor market conditions and a very poor track record of the company. It happens all over the ASX (and world), particularly with resources companies. Have a look at HAZ. A 20c stock not too long ago, had do issue 800M shares at $0.02 each just to get FEEDSTOCK for its Vietnam plant. Have a look at CNQ. A 12c stock in November of 2012, they offered new shares at 7.5c in March of which LESS THAN 7% were taken off. Obviously a discount of 40% vs. its recent high wasn't enough to make 1 out of 10 shareholders take up his/her rights. TNG, a 12c stock in March (trading as high as 19.5c on 12/11/2012), is now offering new shares at 0.045. The list goes on and on, you get the idea. And please stop that childish talk about administration. If that was to happen, we shareholders would receive absolutely nothing but a kick in the you know what.
GXY Price at posting:
7.8¢ Sentiment: None Disclosure: Held
