I am surprised that there is so little 'chat' in respect to the CHM rights issue, in particular in regards to the lack of information regarding the 'underwriter' of the issue. If it was a credible broker or funding house I would have expected that they would have been detailed in last Friday's announcement.
As some of the parties responsible for the relisting of CHM are in a position to make tens of millions of dollars if the legal action is successful, I suspect it is private investor money underwriting the rights issue. Additionally, as there is no likely progress in respect to the court case in the near term the CHM sp will continue to languish at its current level. Accordingly, many nervous shareholders are likely to forego their entitlement thus those involved with the underwriting will have to pick up residual.
I expect that the prospectus for the rights issue will have to identify the underwriter, then we will know who is 'silly' enough to fund the $2.29M
CHM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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