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Perhaps both the ASX and ASIC are a little concerned and even...

  1. 24,386 Posts.
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    Perhaps both the ASX and ASIC are a little concerned and even unnerved about what is going on with these Capital Raisings.

    Just read below and see if you can see therein what made me sit up and take notice.

    Cheers

    ""##Updated temporary requirements for emergency capital raisings issued by ASX

    ASX and Australian Securities Investment Commission (ASIC) have been monitoring the use of the emergency capital raising measures to date and late 22 April, ASX made a number of amendments.

    Relating to the conditional temporary lift in placement capacity from 15% to 25%, a standard rights issue has been added as an alternative to the requirement of a follow-on accelerated offer (PAITREO) or SPP which is priced at least as favourably as the placement.

    ASX has increased the disclosures required by the companies wishing to take advantage of the relief measures, including notifying ASX before the capital raising whether COVID-19 pandemic related or for some other purpose.

    A market announcement will need to be made advising results of the placement, and reasonable details of the approach it took in identifying investors to participate in the placement and how it determined their respective allocations.

    ASIC and ASX will be supplied with the full details of the persons to whom securities were allocated in the placement and the number of securities they were allocated, on a confidential basis.

    And most importantly for ASA after initial raisings looked to have capped the SPP at too small a proportion in relation to retail shareholders proportional ownership, where there is a limit on the amount to be raised under a follow-on SPP offer, the company will need to disclose why that limit exists and how it was determined.

    Mini-AGM season is continuing and "COVID-19" capital raisings are picking up pace.

    We are monitoring the size of capital raisings and note below the ASX response to concerns around the size of cap to SPP raisings which followed discounted placements to institutional investors.##""


    And there it is in black and white for you and others to read and take notice of.....

    ""the ASX response to concerns around the size of cap to SPP raisings which followed discounted placements to institutional investors.##""

    It doesn't make any mention to discounted placements done with existing shareholders does it.??

    As to why anyone would protect and go to bat for a company doing what they just did to it's shareholders base,  is totally beyond comprehension.

    And that, like I always do and did in the past years, it is calling a spade a spade.........PERIOD.!!


    Dyor.!!
 
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