RE: RE: they killed cpp themself.13 Jan 2015 11:13
It depends what your 'new' 1 ord share of 1p is worth in the marketplace when they trade on AIM (the exact same shares that the 3 participants are purchasing in respect of the £20 million placement for which they are paying 3p for those 1p ord shares).
If you look at it another way - if there is a share consolidation then the 3 investors are about to have 90% of the value of the shares they have just bought 'lost'. I don't think so, somehow.
Not to overlook that 2 of the investors already own a considerable quantity of stock. Would they be mad enough to agree to that value being reduced by 90%? I don't think so, somehow.
I would be gobsmacked if the MMs haven't already factored any dilution into today's price. But we'll soon know as I would expect an RNS later today or tomorrow.