RE: What does this suggest?6 Apr 2018 09:56
Brycen I am sure there will be some raise via equity, whether existing shareholders are diluted depends on the relisting documentation and how they plan to raise and what new equity holders will be satisfied with existing shareholders getting. There is no reason why the company can't raise the money at 50p a share and reorganise the current shares at say 1 for 15 which would equate to a current SP of 3.33p. Of course it could be 100p and 1 for 30 or any other multiples. At 3.33p for existing shareholders it would at least show a crumb of value for existing shareholders and a positive for the experts on the board since they took over the company. Whether the new investors, who as we know will probably like to have snouts in the trough, will invest on this premise is anyone's guess. As I have said before if the company can't at least get something like this away and show some value for shareholder loyalty then I, and probably many others, will see this as a massive disappointment.