Wilson, I hope your right about the ace. Few of us would be...

Wilson, I hope your right about the ace. Few of us would be holding if that carrot wasn't attached to the stick.

It would however still be a poorly executed strategy IMO. The best interests of shareholders would be served by showing the ace which would underpin the shareprice going into the SPP and give holders the ability to make an informed decision about participation. One could even speculate that continuous disclure rules would enforce this.

As it stands the SPP is not only going to dilute the SPP (that should now be past tense) but also cost shareholders a bucket load of dollars in admin costs which based on current share price are unlikely to even be recouped by this aspect of the raising itself.

I don't like to be critical because I would like all involved to profit from this stock but as shareholders we need to be more vocal about these things. We should ask ourselves whose interests are served by running a placement coupled with an SPP rather than a straight Rights Issue when a 20% discount to market price is concerned. I know which one would have been less dilutive and fairer to existing holders even had the price held up.