EVO - Evolve Education

[carrom74]

Would be positive for Evolve's Aus outlook

'Labor has promised nearly $10 Billion over 10years to boost early childhood educators wages by 20 per cent starting from 2020'

https://www.abc.net.au/news/2019-05-...ction=business

Now that labour is out of the picture... wonder how the share price will move? G8 was also up quite a bit for the past two weeks in anticipation of a labour victory and next week this stock will be tested too... but the coalition has promised subsidies for childcare but that’s way below what labour promised...

https://www.liberal.org.au/our-plan-quality-education

[silverblizzard888]

Share price and demand holding up really well, price at 13.9 cents

[Scrunch]

Share price and demand holding up really well, price at 13.9 cents

And if you add back the 4.4 entitlements that are now worth 5.9c each there's 26c of value each pre rights retail shareholder also has. It's basically back to 40c!!

[Scrunch]

I've never seen this sort of share price strength while a company is raising money. Close of 14.8c. Add back 4.4 entitlements per share with a theoretical value of 6.8c or 29.9c and the close was really about 44.7c or nearly double the share price before the capital raising.

[whatsup]

I've never seen this sort of share price strength while a company is raising money. Close of 14.8c. Add back 4.4 entitlements per share with a theoretical value of 6.8c or 29.9c and the close was really about 44.7c or nearly double the share price before the capital raising.

Hard to understand unless there is some other issue at p[lay that insiders are aware about, especially as according to some posters here that they are not hitting their numbers and along with the care/education their day may have passed !! strange very strange !

[Te Whetu]

I've never seen this sort of share price strength while a company is raising money. Close of 14.8c. Add back 4.4 entitlements per share with a theoretical value of 6.8c or 29.9c and the close was really about 44.7c or nearly double the share price before the capital raising.

It seems likely that the market was pricing in the risk of a receivership. However, with a fully underwritten placement, that is no longer a concern.

Financial distress also has a cost to a business, even a business that does not fail. There are typically additional reporting requirements placed on the company by its bank. The company is also less able to pursue investment opportunities.

Disc - hold, fully participating in placement, but reduced shareholding today

[tim23]

Did same thing today and reduced holding but taking up my rights in full - unusual action per poster above have pointed out.

It seems likly that the market was pricing in the risk of a receivership. However, with a fully underwritten placement, that is no longer a concern.

Financial distress also has a cost to a business, even a business that does not fail. There are typically additional reporting requirements placed on the company by its bank. The company is also less able to pursue investment opportunities.

Disc - hold, fully participating in placement, but reduced shareholding today

[golden city]

I think it will soon back up to 17c. As that is the average cost of the biggest shareholder from Australia

[tim23]

Gee - I'd love that!

[golden city]

It is the uncertainty of solvency that push the sp lower to 20c. Now all solved and plus extra Aussie growth story plus that two credible director be the biggest shareholder. I think there is value to be discovered that two Aussie is not dumping money here. They must have a good plan ahead