RE: Placing Dilutions9 Jun 2022 18:15
I’d also say that, contrary to what some people may think, the level a placing is carried out at, is not (really) set by the company. Institutional Investors are not pumping money into businesses to “help those businesses grow”, they are, in fact, taking on a level of risk, and in doing so are expecting to make a substantial return.
Chariot cannot just approach a bunch of Insti’s and say “look, we’re going to need a few quid in the not too distant future, so we’ll be looking to you guys to buy some shares, but we’re waiting for our CPR to be finalised so you’re not getting to buy at these levels. You’ll need to wait till that news is out and the share price is around 40-50p, so we don’t have to dilute ourselves quite so heavily”