Qustioned my broker to why initially it was a placement to sophisticated investors only and now its a share purchae plan.
Told that the placement could not be raised since there was not enough demand so the company is conducting a share purchase plan.
Just from gut feeling I don't think that the share purchase plan will be fully subscribed. The reason I say this is because MAE has approached different brokers to underwrite any shortall for the share purchase plan...to date none has taken it up.
Trading back at 2.2-2.3cents now and may stay in this range (or lower) that there is a share purchase plan till mid- April for 2.2cents.
My broker told me that even if the share price does head back to 2.5cents+ he can always get the share purchase plan shortfall at 2.2cents as the company is in desperate need of money. I am told that with the short term payables of over $10million even the full draw down of all the convertibe notes this would not be enough.
More than happy to hear what others think
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