Originally Posted by
ronaldson
Not sure why you think that. Even today after the announcement the close price was $1.06 and the VWAP was $1.0684.
I applied, under two hats, for the full entitlement plus about 20% extra in each case, albeit the sums were small, less than $5k in aggregate meaning I will still have less than 30k in all. My conclusion about the roughly $15m shortfall overall is that, firstly, it reflects that many folk do not have surplus monies lying around currently, and secondly and most importantly the share price following the institutional allocation take up was consistently sub $1.10 so not indicative of windfall gain by participating. Add in the risk factor and more retail holders than usual have flagged their involvement away.
Jarden/Harbour can easily absorb the sum involved and rather than flood the market in the near term will hold until the dust has well and truly settled on the transaction. In summary the capital raise was well priced to achieve the desired outcome, and underwriters are paid for a reason, which is certainty.