FWL appendix 3B 18/7/2011. Issue of 688,073 shares for $60K. By my calculations that equates to a value of 0.0872c per share. Immediately after this placement large sells (for FWL) hit the bid price at 10.5c last Thursday and Friday. I know this because I was the bidder on both occasions. The Thursday trade I was doubled up with another bidder and the transaction was for just over 51K shares and Fridays's was for 115K shares. Both transactions took out the 10.5c bid levels with no residual outstanding shares. To me that is a broker with instructions to sell at a specified price but do not add to market depth. No proof but having invested in other stocks that entered similar funding arrangements I am pretty sure I know their method of operation. Yes, I know the original announcement by FWL stated a floor price which I was happy with but the appendix 3B mentioned above was for $60K which is coincidentally the value the Spring Tree was to invest per month.
I think the relevant line for the agreement with Spring Tree is
"The company MAY refuse to issue shares if the share issue price is below the Company Floor Price"
LCG Price at posting:
9.9¢ Sentiment: LT Buy Disclosure: Held
