Tend to agree Bermuda re the low cost options but why issue shares at 4.4 cents to Sophisticated investors? Why not do a placement and an SPP?? Sentiment towards the stock would be better from the broader investor pool.
Gazprom
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Hi Gaz,
I think I read that the Directors are underwriting this them selves. An SPP would leave them with an undetermined cheque to write eh?
Hi Bermuda.
Dont usually average up but I will probably take my options. At 1 to 7 thats a cheque that wont be too demanding on me. lol.
Hi Strat,
Yes, they are underwriting it. However, they would not necessarily have to underwrite the SPP - would they?? They also could have underwritten a portion that they felt comfortable with. This happens in a few issues. I think that all S/H's should be treated eaqually and I don't like the idea of a certain few been given a discount to the market and then being entitled to all the benefits as ordinary s/holders. Defeats the purpose of securities law really. However, a lot of companies do exactly the same so I am not picking out NWE as I am a fan of the company.
Hope you had a good Xmas Strat/ Bermuda!!
Gazprom
I can see the time line for the options but can some one confirm what would be the time line for the placement of the shares to the Sophisticated investors as the soon this is completed the better
It will be interesting to how the share price goes in the next few days.
Approx 28 mill share at a discount of 1.6 cents mean the company gave away approx $450,000 to raise approx 1,230,000
With approx 700,000,000 listed shares dropping from 6c to 5.4 cent the company value has droped approx $4,200,000
The $450,000 is equal to less than 0.5 cents per share. The other factor affecting the share price drop would be capital gains would now be shared around more shares.
I suspect this capital rasing effect on the share price will soon be forgoten but the effect of the options could be greater as while I am planning to take them I already trying to think of where I will find the money for them.