Ann: ECQ Exercises Opitons to Acquire Cynata Inc , page-54

re: Ann: ECQ Exercises Opitons to Acquire Cyn... Let me rephrase what I said before...what’s done is done, so I won’t repeat what I think they should have done.
As a result of how the ECQ have gone about this share offer, IMHO this is how it will play out.
The share price will trade between 1.9c and 2.3c until the offer closes.
If it trades any higher people (like me) will sell a portion of their holdings (as I did already). I know I will get them back at 2c and it is an easy 20-25% profit. It won’t fall much below 2, or for very long, as the Underwriting may be affected (and that is no good for anyone) and really there is no point selling there anyway.
ECQ has ceded power elsewhere, for the time being and others are driving the bus. There is no point talking up the share price unless you are in on the game. Bigger holders will keep doing this arbitrage, especially ones tight with the Underwriter/Broker. As I pointed out they can simply allocate shares back as they have this ability (and please note this is BEFORE any Shortfall) for this type of share offer.
Just before the closing date some announcement will be made to get the price to around 2.3 to get the take up as high as possible. Then more than likely another will be made as the allocated shares become tradeable enabling some (if any) of the shortfalls to be sold off.
This is not some conspiratorial argument, traders (like me, although I have a long term hat) and brokers are all just parasites and if the opportunity arises we get what we can when we can, it’s just business (although the window may have closed now).
If you like ECQ as I do and you are a long term holder, just stay well out of the current twilight zone and wait till it’s all done and dusted and the circus has left town and wait for the fundamentals to kick in and hope not too much damage is done to the bus by the current occupants of the driver’s seat in the meantime.
Of course I could be completely wrong and this sort thing has only happened before in the movies.