The rights issue is now closed and it will be interesting to see how it all plays out.
I suspect it might well be over subscribed. I certainly took up all my rights and made a small request for additional top-up shares. However, I suspect even a small request may yet be trimmed back.
If this scenario does play out then it bodes well for a sustained recovery in the share price in the short term, which I suspect has already begun.
Other statistics;
The failed rights issue at 12cents received approx. 15% take-up.
Approx. 20% of the 8cents rights issue were traded on the market.
Therefore my punt is that approx 10-20% of the current rights issue might be available as a shortfall and that this will be keenly sort after.
As a result any post-rights overhang (those selling out early) might be sponged up by those who have missed out.
Patersons might also be caught short, that is if they have promised clients shares or have informal underwriting agreements in place (however, this is pure speculation), on this subject I would be very interested in others opinions. Esp. anyone who works in corporate finance.
Seems to be fair bit of new blood taking positions on the register.
Macro picture still looking good for upwards momentum of the Price of Platinum Group of Metals. Management now seem focused on returning shareholder wealth and bringing Smokey Hills to break-even. Hopefully we don't have to wait too long to find out.
Cheers
Gus
PLA Price at posting:
9.0¢ Sentiment: Buy Disclosure: Held
