doubting shareholders probably want to sell after reading this...
who knows why, it's just not make sense to me becasue thr's nothing new, exactly
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doubting shareholders probably want to sell after reading this...
who knows why, it's just not make sense to me becasue thr's nothing new, exactly
Interesting article. Neither RPI or PGC will comment as they are not part of the capital raising. As I understand it from the Annual meeting only the independant directors know the details of the proposed capital raising.
Apparently Craig Norgate stepped down as chairman not because of the SFF stuff up but to ensure the chairman was an independant director for the capital raising.
PGC indicated in their own capital raising documents that they " expect to have the financial capacity to participate in any potential capital raising by PGW". PGC also need to be careful that they do not get too diluted otherwise they would have to revalue there stake in PGW downward by many millions.
So my guess is that they will take up their allocation what ever it is.
Also I thought when Brad McConnon talked at the Annual meeting he had a lot of faith in PGW and that the company had a good future. And those south Island investors seem to have a lot of money to invest. If McConnon family dont have enough money one of his southern mates will probably help him out.
Expecting the capital raising announcement this week , should see the share price climb back up.
Or see it death spiral downwards. Either way will be a very exciting week, wish they would just bloody get on with it. First it was in the first two weeks of november then it was early november. Now we are in the second half of november and still no news. The fact that it always takes the board far longer than announced doesn't exactly inspire confidence.
Discl: Hold far to much PGW
death sprial downward?u mean after the initial dilution?
what could be the reason for that?shareholders want to sell below their average price ?so why should they still participate the capital raising?
But i do agree anything could happen in stock market...
I personally think that it will be a good month for PGW. But the have to get underwriting, underwriters may end up insisting on something like 2 for one at 30 cents. Meanwhile RPI either sells down its stake to fund a rights purchase or sells its rights. Consequently the share or rights price plummets. Hence downward death spiral I speak of.
More likely scenario: Rights issue of say 1 for 2 at 60 cents supplemented by placement. RPI finds money through McConnon family and takes up its rights as does PGC who despite insisting they havn't made up their mind will take up the rights because they think its a bargain. Hence share price takes off and hits $1 by January.
Discl: Hold PGW
SP rallying strongly this week, some people in the know about cap raising? I wonder. If this keeps up much longer, I'd expect a please explain letter from NZX.
2 for 3 at 50c ?
Yeah I would not be surprised to see the capital raising announcement tommorow or thrusday. Similar activity before the agria placement as well...
excited!anyone see on NZX this morning about the more depatures from board?
Is that good news or bad news?or maybe not news at all