RE: REE29 May 2026 19:49
"If REE had done a similar type KEN placing at say 3.5 to 4p, do you think the SP would be where we are now?"
We have no idea where the share price might be following such a placing - there are plenty of examples of share prices dropping significantly after a premium placing.
The real problem is the widespread acceptance of placings despite the fact that they are contrary to the interests of smaller shareholders, and it is placings that create the incentive to sell/short the relevant shares whenever there is news of a potential capital raise. Given that most placings are at a discount, news of a potential capital raise automatically creates an incentive for potential placees to attempt to reduce the relevant share price by selling or shorting, and this is exacerbated when other people believe that this is likely to happen.
If this regular decimation of the share price is to be avoided, smaller shareholders need to object vociferously to placings and need to insist that pre-emption rights should be respected unless they are disapplied for a very specific reason.