Difficult to say really. I don’t think they know anything we don’t, but likely EPI make money out of raising capital and not investing for the long term. I may be wrong, but can only assume this from their actions. Who knows what impression they gave to the BOD at the time. As I said before, there should have been an open offer to the shareholders at 0.18 as a reward + the new shares would have been in safer hands, rather than in the hands of a ‘loose cannon’. Still, we are where we are and I believe the shares are good value, even though I am a little miffed the BOD did not test the shareholder’s appetite for the placing. Judging by the fact the current shareholders are buying more at the higher price (myself included), the offer would have been fully taken up. NR stated that he wants to include us in the next placing. Whether or not this last episode will put people off, I guess will depend on the price of the share at the time, results of NT2 and discount offered.
Whilst EIP’s average is dropping from 0.18p if they are getting these shares away at around 0.22p, another factor which will work against them is the exchange rate. Whilst the company is based in Singapore, they probably operate in US$. When the placing was made on 16th September the rate was 1.32 and now it is 1.22, so at the moment they need £2.16m, just to break even. So, if they have made 0.004 on the 260m share they have sold (very approx. £100k), they won’t want to drop the price too low on the remainder…..assuming they are going to off load the lot!
Teabiscuit - depends if they are offloading their entire holding. Seems they are slowly drip feeding them into the market, hence the price has not gone to 0.18. Just hope when news comes the placing has all but gone.
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