I saw this on lse website just another interesting perspective I thought. Other then we are screwed.
Posted by Ivor elsewhere. I reckon the whole rights issue scheme has been a way for the directors to increase their stake in the company and to bring in new investors. The directors must have known that existing shareholders would be very reluctant to take up the rights issue a. because of the dramatic fall in the sp this year and b. because the rights were pitched at roughly the same price as the shares. So why go for a rights issue that was doomed to failure?Because the directors wanted to invest more and have new external investors who want in. Notice that when the company announced the results of the rights issue they deliberately ignored the directors' holdings. The RNS states that only 242.9 million shares were taken up representing 6.5% of the issued shares. But what happened to the 419 million shares held by the directors? John Bryne holds 351 million the rest being held by other directors. It's fairly obvious that the directors are going to subscribe for much more than their entitlement - they have the right to take up unsold rights. Notice that the rights issue document hints that the results could include a change of ownership of the company - ie that existing directors and outside investors could take control of the company by taking up unsold rights.Notice also the lack of positive news in the weeks before and after the rights. Several people noticed that a new website had been put up briefly before being taken down. This website pointed towards the new Kalina Cycle projects coming on line in the New Year. Withholding (quite legally) good news until after the rights issue would ensure that new investors at .25p would get a substantial gain when the news is released.So my belief is that the whole rights issue has been engineered to quickly and effectively (and legally) bring in new capital, just at a time when the company is turning the corner.We'll know the truth on January 3rd. Ivor
Cheers iconic1 All imo Hope works out for all holders
WAS Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
