What SP post SPP?

It is going to be interesting to see if completion of the SPP has any impact on the current strong SP. Probably not.

Particpants in the SPP needed to be registered as shareholders on 18th. March 2015 - i.e. the day prior to the announcement. On that basis those professional and sophisticated investors (PSI's) who participated in the $25m (35.7m shares) placement will not be able to participate unless they were already shareholders as at 18/3/2015.
On a similar basis the $100m in shares (142.8m shares) to issue to AGL vendors will also not be able to participate. Additionally the shares to issue to AGL vendors will be in escrow for two years.

Based on the above the only shares hanging over the market (potentially to be 'dumped' when allocated) on completion of the SPP, will be those issued under the SPP and that is expected to be a min. of 14.28m - but could possibly be double that number (IMHO). That aside the number is not great and those wanting to retain their allocation cannot be underestimated.

The shares issued to the PSI's should have been well and truly shaken out (sold) or bedded down (long term retain) by then, so any impact from that quarter should be negligible.

Clearly the potential of RCG has been positively rerated following the announcement of the AGL transaction and I am therefore expecting the RCG share price to remain firm (say $1.15 - $1.30) post the SPP allocation.


DYOR