Imho a cornerstone investor is not any help short term. To issue new shares even at a small premuim to bring a cornerstone shareholder up to say 25% (anything more than that really is control imo) simply isn't going to raise much money, and badly impacts existing holders.
A rts issue is the only option that avoids diluting existing holders. If they must do it, I'd like to see all the underwriting nonsense dispensed with. Just make it say 3 for 1 at 20 NZ cents, with the rights tradeable. Allow exising holders to apply for any shortfall.
I however hope the company can tough it out, at least until the real estate is sold, however the fresh layoffs infer trading conditions are getting even tougher, therefore I still expect a capital raising at some stage.
EL
FPA Price at posting:
24.5¢ Sentiment: LT Buy Disclosure: Held
