Carrying on buying today. He’s so relaxed, taking his time, if he’d bought all the last month’s shares he’s bought in a hurry, he’d have paid a lot more and yet we’d have gone back down by now
Reasonable logic that the company is diluting but it has got $1.34m cash from issuing new shares. If the company disbanded tomorrow, it would have more than 26.4p to give out to those new shareholders as they're paying a premium to get in. So the value per share has gone up imo
Certainly it's easy to see a discounted placing is clearly a loser all round but raising at a premium can't be all bad. Say we raised $5m by issuing just 5 shares at a huge premium at $1m per share. Still dilution, but making the company more valuable.
Weird isn't it that a company does a discounted placing and 'down she goes' - do one at a premium and mm's not impressed.
RNS seemed quite straightforward, $10m convertible bond completed (could be converted @37p); $1m equity raise oversubscribed (now $1.34m) and being extended a week for further possible raising @30p (they previously said the $1m could be increased to $5m if there is demand)
Rumour was about that Dekel was finally getting rid of all his holding and the last week's director deals were to absorb his shares. That will soon be the end of Dekel's and anyway the company looks to be going from strength to strength.
I've asked Chris Eger CFO to explain a bit more simply Ciftay's deal which is a fantastic one to make sure construction gets up a pace.