Reasons for capital raising to Fund Project Development, page-15

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robbo24

11,347 Posts.

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29/08/17

08:57

Post #: 26824734
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Originally posted by TheSeeker ↑

I see a very clever angle here from NTL.

A lot of their holders have small parcels acquired in the Heritage HTM days and little capital. Think elderly pensioners living in the Waihi area. They are sitting on their little parcels and can't afford to participate in capital raising share plans. I suspect over 50% of current shareholders fall into this group.

However if there is very good news from Bonanza Zones that drives up share price well beyond NZ$02.2c lots of new investors will dive in so they can get the $15,000 allocation.

This will broaden the shareholder base considerably, hopefully to include people with deeper pockets.

For this to work the Bonanza news would have to be VERY, VERY good, particularly after yesterday's bloodbath.

I suspect the target share price to get broad buy-in and participation in the $15,000 offer would need to be well over $0.03c, so that is how good the news has to be.

If I was a day trader (which I'm not) I would be piling onto NTL today at current low levels, I think some people could make a killing here.

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The record date was last Friday 25 August.

If you didn't hold then, no entitlement

Hence why it's far less dilution than a rights issue (shortfall) and far less unfair on shareholders than a placement (to a sophisticated investor).

NTL Price at posting: 2.0¢ Sentiment: Buy Disclosure: Held
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Reasons for capital raising to Fund Project Development, page-15

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