45m War Chest, page-39

I thought it is logical that when management thinks the SP is high or possibly overvalued that it would benefit existing shareholders immensely to do a placement to outsiders at high prices.

Conversely, if management thinks the SP is too low or undervalued then it would benefit existing shareholders if a rights issue is done.

There is also a further consideration of speed, costs and the uncertainty involved in doing a placement as opposed to a rights offering. On top of this, based on my understanding, if a company exceeds $100m in revenue per annum, then they can only raise 15% instead of 25% without shareholder approval, and AMA is on the verge of exceeding $100m of revenue per annum. Doing a lengthy rights offering might mean that they cannot raise as much as they did.

In my humble opinion, especially based on what Ray Malone has done over all these years, I may be inclined not to judge him too harshly on this placement. In actual fact, I actually applauded the move as a very good one, especially if you consider the Greek and Chinese market moving events immediately after the raising.