Here is the statement from the co re the shortfall
The underwriter takes up the shares & disposes of them as they wish
Often they just dump them in the market when the shares are selling above the issue price.
9 March 2005 Company Announcements Office Australian Stock Exchange Limited Level 4 20 Bridge Road Sydney NSW 2000
1:4 RENOUNCEABLE RIGHTS ISSUE The Directors are pleased to announce that it has received applications for a total of 18,106,632 shares to its fully underwritten 1:4 renouncealbe rights issue which closed Friday 4 March 2005.
The shortfall in acceptance of 6,865,676 shares will be fully placed by the underwriterCunningham Securities Pty Ltd.
For further information please contact Mr Dave Nicholls from Hugall & Hoile Ltd on 08 9249 4666 or Mr James Middleweek of Cunningham Securities on 08 9322 9158. Yours faithfully, Dave Nicholls Managing Director Hugall & Hoile Limited
HUG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held