Proposed placing to raise approximately £4.55 million of up to 108,392,857new ordinary shares of 1 penny each ("Placing Shares") at a price of 4.2 pence per share (the "Placing Price") with new and existing shareholders
I did say at the beginning of the week. Why so low? This is going to smash 3p today.
I think we may well have been correct here as the price action now suggests a placing well below current levels. 6.5p is where funds were raised previously according the accounts so I don't think they would do a placing any lower than that but I find it hard to justify a placing above that level either. Possibly a little higher as that would always be the preference but I don't think it's possible in these market conditions.
I would say that things have changed now and rather than buy at 12p look to see if 12p is breached. If it falls below 12p then it will end up back to the 8p level. They will be needing working capital any day now going on the published accounts. I don't think they will be able to raise working capital at these prices having been under 6p a couple of months ago and also when we are very close to a global market crash which could come any day now.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.