Questions need to be asked...

This capital raising really smells. Putting aside the acquisition for now, but a few things here are glaringly obvious to me:
- The offer has been priced at a 15.4% discount to the previous close this is far too high for what is meant to be a 10% cash accretive acquisition
- The rights issue is non-renounceable, so shareholders who dont take it up are being materially diluted
- Any rights not taken up by shareholders at this massive discount will stay with the underwriters to give to their insto friends
- The insto placement is being done at the same price as the rights issue (a 15% discount)… the insto placement should be at a higher price than the rights issue….

Add to this the juicy fees the bankers would have been paid, probably in the vicinity of 2.5-3.5%... what a shocker…

This looks to be a screamingly bad deal for existing shareholders, and one where the banks have pulled the wool over the eyes of the company and shafted shareholders.

Serious questions need to be asked of management and their bankers…