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As a gnat's chuff?

If it is a rights issue then they won't be able to do that. They will have to treat every holder of the same class of share equally, in proportion to their holdings.

Your basic maths is funny. By your argument, buying a share and watching it drop is good because then it is cheaper to average down. You are also losing more money, but don't let that put you off. Oh, and there will be more shares in issue for the same money raised meaning that you will own less of the pie.

If they had just raised the money by a placing at say £1.25p then they would have been criticised for a heavily discounted raise. They can't have thought that this option would work out better though. The appetite for a big placing like that was either not there in the market or they are very naïve. I can't see a third alternative to one of those two.

Give it a rest Neil. Look at your life FFS. Have some pride in yourself. You shame the human race.

My mistake. I think they bought them at £1 a warrant. Not so good business lol.

Hot Rocks sold some of their warrants on at £1 a warrant, from memory. The SP was £4+ I think, at the time, but looks a great sale now in fairness.

You can currently get a price for £25k's worth easily enough on II, so not that hard to buy.

Why is it depressing CaseyJ? You don't own shares here. Weird

I agree that there should be options here. They haven't played their cards well though. I remember Lonmin doing a 46 for 1 RI at 1p a share when the SP was 18p odd a share on the day of the announcement. The low sp doesn't preclude a raise but it knackers existing holders, particularly ones without more funds to put in. The existing large shareholder can pick up any slack from those without funds.

What could they raise quickly from disposals, do we think?

Clearly the lenders have pushed back and told Synt that if they want support and a re-fi then equity needs to come in. It can't all be this self help / market improvement guff that the board are talking about (and which they have so far failed to deliver on)

Those example calculations seem to conveniently ignore the fact that if the raise price is very low then it is more likely to take much longer to reach the average pound price. A premium raise (and no, I'm not saying that is likely) would likely mean the SP gravitates immediately to that higher price and beyond, on the removal of a chunk of uncertainty. A low raise and the opposite could happen, with there then being many people selling into each rise once in profit, and making the move more protracted. Statistics can present whatever case you like but I agree, II's will want their pound of flesh and so a likely low raise price - they are not charities.

Off to a pod with hot tub etc in West Wales with my partner this half term. It made me think of our first trip together 4 years or so ago, also to a pod with a hot tub.

The SP then was £1.50 odd, during that brief spike on the 'takeover' talk. 4 years on and with supposedly so much progress and the SP is thirty five pence FFS.

What a shower investing here has been to date.

Could just as easily be a sell from earlier. The drop is pretty relentless, and probably avoidable.

I don't see a rights issue as any less likely now than before. It will just mean more shares issued than necessary - a lot more!

It's about understanding that you are buying the equity, the sliver of value once the debt is factored in. It's like buying a house of £300k with a 10% deposit. The house is valued at £300k but your equity is only £30k. If the house value drops by 10% then it is still worth £270k but your equity is wiped out. If you keep making the payments and can get out of it then great but if you are forced to sell because you can't make the payments then you're toast and left with nothing for your equity.

I think an RI at 15-20p, which could have been avoided imo. Shareholders are effectively wiped out pretty much, particularly if they have to raise a hundred million plus. No point putting a sticking plaster on this wound now, as that opportunity has gone.

I agree that the horse has likely bolted now. It's now a hold imo if you already own but it wasn't when the announcement was first made (in hindsight I suppose)

Get medical help for your obsession with this company.

Tempting now. I think it has to be resolved by Monday. Not a fan of after hours RNS's on a Friday especially though. They've screwed this up big time.

It could though (possibly) be one of those where once the uncertainty is dealt with, it recovers and doesn't drop to the rights issue price. 9 out of 10 times it does drop there though, meaning no reward for holding. Tricky