And ECR as well. It's just that the current fashion is to greet every MTR investment as a hallelujah moment. I suspect that this will not be the case in a few months/years but currently they are in vogue. As AB was a few years ago.
"I expect the SP here to fall down towards the placing price (0.42p) as usually happens after a placing."
Not always the case...if the market and investors like what the see funds are being raised for, they see inherent value and guess what, shares go up. Why have RRR shares just gone up 23% then on a discounted placing I wonder.
Notable too that NCT whom we are participating with has also just done 2 rounds of discounted placings raising their shares issue 43% in the space of a single month.
As ever these companies are, imo, uninvestable while ever they persist in undermining existing shareholders with discounted placings. They are for traders only who must pick and choose their moments for quick in and out trades. Anyone holding for any length of time just risks running into the next placing.
I expect the SP here to fall down towards the placing price (0.42p) as usually happens after a placing.
As everyone expected, a significant placing, will more follow?
Total shares in issue as at Feb 1 were 245,104,445 Total shares in issue after this dilution - 392,325,740
That's a very hefty 60% increase in the share issue in that time period.
The last AGM gave the company authority to issue up to 400m shares this year so I personally think we will see further placings. The directors taking up shares during a discounted placing is unacceptable and unforgivable as always.
The only small benefit being, the company gets the money. If he purchased on the open market the company would not get the money.
The fair thing for him to of done would of been for placement to have been at today's price - this would of seen a bit of confidence perhaps, but at a 20% discount - bear in mind the volatility I would not see as a complete disaster, but I would see as a bit of a p.ss take.
I do not think the market will hate this news... let see
Bell subscribes for a poxy £20k after trousering £££££££ over the years #avoid
Also don't be fooled by PJ / MTR taking a position here, he's a shrewd operator, he's in it for a trade, look at ECR and NYO as examples, talks it up, sells and moves on, nothing wrong with that but don't fool yourselves into thinking he's a long term investor, it's all just a game and he plays it well.
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