Good strategy, except Graincorp can actually fall if the market takes a hit over the next couple of weeks. Close date for SPP is 29th June, so there is a lot of time for people to think and for markets to react.
Main point of the strategy is to buy a small parcel of shares on market to give you the option to purchase through the SPP @ $6.25. (which is what Bundy_Too mentioned)
No harm in that strategy.
The main reason for the capital raising is to help pay down debt. After the completed sophisticated investor raising as well as the proposed SPP, debt should be at a managable level. Depends on how much is subscribed through the SPP.
Anyway, anything can happen in the short term, but long term it seems like a good investment.
GNC Price at posting:
$6.26 Sentiment: LT Buy Disclosure: Held
