My view is that the underwriter genenerally charges a fee of...

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Joe007

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01/07/18

08:22

Post #: 34062804
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Originally posted by Few Pennies ↑

Lots has been happening, I've been in catch up mode with my business, and very sorry but lately haven't had much more than the odd glance on the odd day at HC but meanwhile IMU has been on the move,
The way I see it:
We have a very big cap raising and its fully underwrittin so its a done deal the money is going to come, we are not actually needed for this.
However my understanding of how these deals work is that they are often (but not always)
done for a set fee which is often independant of the amount finally taken up by the underwriter, so it would be I suspect a cost to IMU of a couple of hundred thousand dollars, and the underwritter simply takes up all the shares and even if there is none left they still would charge that fee to IMU
So
The company very likely has made some kind of indication to the underwriter that it will be worth the underwriters while.
So
The company gives the underwriter the understanding that it is very very likely that good news will come after the underwriter mops up the uncollected shares.
In addition I don't think (but correct me if I'm wrong) the underwriters pick up the 1 for 3 options, and if they are not getting those options then I think that the biggest shareholders (in particular those on the board) would rather the underwriters picked up as many shares as possible as this creates less options to dilute the market later, which why we have not and will not see any good news until after the entitlement closes.
Good news flow would have been hinted to the underwriters, otherwise (in my opinion) underwriters just would not be interested. (from the prospectus it appears to me that options are only issued to shareholders and not the underwriter)
The news will flow after the 13th of July thus giving Bell Potter opportunity to make their doe ray me, underwriters always only buy shares that they are sure they can sell at a profit over the following months, I'm sure that IMU directors would have indicated that the results and updates of the currant trials would probably come out after the 13th July.
I see great opportunity and have applied for 1.3 million which is almost half of my entitlement which has cleaned me out but I believe the share price will move north again within very short order

fp

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My view is that the underwriter genenerally charges a fee of around 5% of the monies borrowed , the share price may find it a little difficult to move forward for a period ,, as the undwrwriter dumps into any price advancements , for mine the less the undwrwriter takes up the better , just my thoughts , good luck to all holders.

IMU Price at posting: 2.9¢ Sentiment: None Disclosure: Not Held
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