roc in a hard place

"AMID the rush to raise equity, ROC Oil's annual meeting today will seek clearance to raise up to 30 per cent of its issued capital at some point in the future for an unspecified purpose.

ROC has had its trials, with the stock closing up 5 per cent at 63c yesterday on takeover speculation.

The trading range over the past year has ranged from 30c in February to $2.68 in May.

ASX rules say you can only raise up to 15 per cent of issued capital in a given year without shareholder approval.

The reason, which seems to have escaped attention in the rush to pay down debt, is that issuing new shares is dilutive.

Risk Metrics has recommended that shareholders reject the open-ended request to issue new equity. It will be interesting to see whether the board can convince shareholders in these capital-starved days that more equity is always good."
The Australian 21/05/09
http://www.theaustralian.news.com.au/story/0,25197,25513456-5013408,00.html

Doesn't matter about POO now all that matters is to see what happens with this. If they are allowed to dilute again price will drop by 30%. Can't be good for todays trading.