Most of the time during a Cap Raise, of which investors are participating in a raise (usually existing holders) they are able to aquire the shares at a significantly discounted rate.
However prior to aquiring the new shares / the date in which the new shares are being issued to the market, they typically offload their existing shares before hand.
Reason being is to:-
A.) Maximise the overall gain from the exchange and try to sell the existing shares at the highest price possible beforehand
B.) To be able to pay for the new shares at the significantly discounted rate whist at the same time aquiring a much larger quantity of shares at the same time.
It's the oldest trick in the book!
Essentially it's a win / win for the investors and helps to de-risks the investment holding.
Also is a good way for a Company to raise the required funds as it provides a great deal of incentive for the investor.
My point being is that I believe most of the selling to date already has occured in the recent sell off we have seen to date with Cap Raise investors doing just that.
I don't think there will be a significant amount of selling when the shares go on issue tomorrow. I think investors who have participated in the raise have secured their positions for the long term and it will be onwards and upwards from here abouts.
Especially with upcoming drilling campaign to commence / news from AGC drilling imminent / not to mention gold & silver prices being at absolute all time highs at the moment and climbing from current world wide factors relating to war.
It would be a poor investment strategy to sell at this stage IMO.
If anything I think we will see the price start to be pushed back up again to new highs if anything.
Alot of big things to come still and the company is placed well to capitalise.
This is all IMO though! DYOR and GLTAH
SER Price at posting:
1.9¢ Sentiment: Buy Disclosure: Held
