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Agreed - at start of play the placing was for 1.5m at 1p - from a £6m mcap.
So yes, a massive discount, but actually only a dilution of 25% or so?
If they had raised £10m at 1p then yes - I get it .... But a drop to 1.2p from 3.5p is a total overreaction - especially when you consider the director has put cash from his own pocket into the placing.
True value here is 2.0 - 2.5p given the above.
Only off tiny late reported trades... A few 1.50's popped up throughout the day but I wouldn't pay much attention.
True spread at close was 1.34 / 1.22
A 10% spread is something the MMs will need to work out tomorrow to create some liquidity
Based on a 1.50 close, will almost certainly open up "10% down"