so if the merger is so great

Why are institutional investors being offered a discount on CVY shares?

"Coventry also plans to undertake a capital raising of A$1.3m at A$0.055 per ordinary share to institutional investors which is expected to be finalised over the next few days and which will result in Coventry having approximately $2.7m (before costs) in cash prior to the implementation of the merger."

I carefully compare this stock to another gold company which is at a similar stage. That company managed to get institutional investors on board at a premium.

If this merged entity has the goods - why aren't management making the most of the opportunity by securing a premium.