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h00ts

46,578 Posts.

8717

06/08/15

11:00

Post #: 15760503
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Originally posted by ozblue ↑

"Funding/CAPITAL RAISING"

What do you do if you want to gain control of the company cheaply? A. You try and raise as close to existing price as possible so that market price goes below cap raise price, then as a large holder don't participate.
The cap raise is a failure, the price tumbles.
You then do another cap raise at a much cheaper price, but close to existing price, and repeat.
At a really low price, in comes the white knight with the offer 50% above current price ie 20c or so to mop up all shares.
The Chinese are playing this game beautifully.
Of course there are alternatives like they did with MGX.

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You mean like when none of the big 3 took part in the $2.50 December 2013 SPP - O.W waited and then took their holding to 19.9% earlier this year buying 24m shares at $1.25 - Smart operators !!! if your going to average down your holding costs from $4 much better to do it at $1.25 than $2.50

Last edited by h00ts: 06/08/15

CDU Price at posting: $1.11 Sentiment: None Disclosure: Held
4 Upvote

0 Great analysis

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