heres a thought, page-10

The difference between the cap raisings of URL and other companies is this. In the case of companies like MQG, the rise in SP was due to improving confidence and sentiment in the company. As a result the institutions who took up the placement would have had a reasonable expectation of selling off the shares in the open market after issue above their cost price.

In the case of URL, the rise in SP is due simply to speculation that they have done a deal with Xstrata or another significant. Or Xstrata or the significant other have been snapping up shares in the market in preparation for a takeover. We are not privy to this information. However, if URL is doing a placement, the prospective participants would want to know what was underlying the rise in share price. If the rise in price was simply due to speculation rather than a fundamental change in URL's prospects, I don't see why the institutions would buy placed shares at a price of 3 or even 2 cents. It would be at just below the prevailing price before the current run-up i.e. less than a cent. That is because once the information gets out that there was no fundamental cause for the SP to rally, who are the instos going to sell the shares to for 2-3c?

If they are going to get that placement price of more than 3c+, surely there must have been something significant happening for URL otherwise this capital raising would not be successful at a price above 1c? So I am mildly hopeful that the recent run-up in the SP was due to some solid fundamental changes in prospects for the company and not just hot air.

I hold at the moment and am also frustrated about the lack of information provided by the company.