instead of issuing 2 shares for every 11 held at 8 cents ags should issue 2 shares for every 110 held at 80 cents.
think about it before you say you would not pay 80 cents per share.
firstly you are still going to hand over the same amount of money in total you just get less shares for the same outlay.
the result is ags still raises the money needed but only issue 6.2 million shares which is negligent dilution.
now this is the best part. when the market sees a capital raise at a premium they go what the heck is going on here and they all take an interest then whamo. up goes the ags share price and the ags share price is no longer lingering around 8 cents but heading up towards 80 cents.
this would also send a message to a global audience with regard to what ags is worth.
maybe we should go a step further and issue 2 shares for every 1100 shares held at $8. then we only issue 620,000 shares
or maybe 2 shares for every 11,000 shares held at $80. same amount of money raised and we only issue 62,000 shares. and remember everyone you still hand over the same amount of cash. so no big deal. you can still have your vegemite sandwich for christmas.
what would you prefer an ags share price of 8 cents or an ags share price of $80?
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