Read the announcement today. I also read the post that has been...

Read the announcement today. I also read the post that has been put our by ZZEDZZ. The post by ZZEDZZ has been distorted.

The company has not said it needs the $100m and the $85m. The company has clearly said the M&G guys have gone and as a result reduced the real value of CDU and the company is now giving the opportunity to all shareholders to get into the stock at a reduced price.

The company obviously could have just taken the $50m as a placement at the premium instead offering it as a rights issue. It seems obvious that the underwriters have valued the stock a lot higher that what it has been trading at since the sell out by M&G. The rights have been offered to all shareholders and the rights offered can be traded by the shareholders. This would normally not happen in companies, but it is clear that the directors of CDU value and run the company for shareholders. For the shareholders that cannot afford to take up the offer can at least now sell their rights issue offer.