Maybe so, but that is extremely poor capital management and puts all long term existing shareholders at a disadvantage. Yes, they will be able to purchase additional shares at a discount, but when the market opens after the share placement, their existing holding will fall by the same amount of the discount. Hence all long suffering shareholders sill continue suffering while more recent ones will enjoy the benefits of the CR discount amount.
KZA Price at posting:
46.5¢ Sentiment: Hold Disclosure: Held