RE: Rns18 Feb 2026 21:26
"The potential for a placing was announced yesterday, at which point support was still being sought from II's per the RNS.
MMs in their wisdom dropped the sp below the proposed placing price yesterday, so no way was it going to stay at 20p."
😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 😂 All time classic that lad!!!
People heard about the placing and left by the herd!!!
Thats why the price is FALLING.... Note falling and not fallen.... Its going to tank.
This placing isn't even underwritten!
When a company announces a placing (an issuance of new shares to investors, often institutional ones), the share price frequently drops, leading many shareholders to sell. This behavior is driven by a combination of dilution fears, the discounted price of the new shares, and, in some cases, a loss of confidence in the company's financial position.
Fairmont Equities
+4
Here are the main reasons why so many people sell shares when a placing is announced:
Dilution of Existing Shares: A placing increases the total number of shares in circulation. As a result, each existing share represents a smaller percentage ownership of the company and a smaller claim on future earnings. Existing shareholders sell to avoid this reduction in their proportional ownership.
Discounted Pricing: To attract buyers quickly, companies usually offer the new shares at a discount to the current market price. This discounted price sets a new, lower benchmark for the stock, causing the market price to fall toward that new, lower value.
"Buy the Rumour, Sell the News": If the stock price rose in anticipation of a capital raise, the announcement itself becomes the trigger for profit-taking. Traders who bought earlier, anticipating a positive announcement, often sell to lock in gains.
Signalling Financial Weakness: A sudden or unexpected placing can signal to the market that the company needs cash to avoid financial difficulties or to cover losses, rather than for growth. This creates negative sentiment, causing panic selling.
Short-Term "Flip" Selling: Investors who get access to the discounted shares (placees) may immediately sell their shares ("flip") to make a quick profit. This creates a large supply of stock that can temporarily overwhelm demand.
Overhang Fear: Existing shareholders fear that the new, large investors who took part in the placement might sell their shares soon, causing further downward
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