News: APC Australian Potash Announces A Renounceable Rights Issue To Raise Up To About $5.2 Million..., page-15

Yes, o.k. sort of.
But you seem very negative.

You argue that Patersons are getting a good healthy fee because with the large underwritting they take on the increased risk of being stuck with loads of APC shares on their books.
Makes sense.

I do agree, at 8 cents the brakes get applied to the share price. And Patersons may well offload at anything that constitutes a profit. Probably somewhere above 8 cents. But the news flow should be good.
If you want to take a positive view you can infer Patersons does not believe people will sell below 8 cents. Its a vote of confidence. I dont think Patersons can gamble and say, " oh well, people will take up the rights issue and we will just get our fee." They have to go in thinking we are going to get, in a most risk on scenario, 4.2 mill - what directors take up. I dont think they are going to speculate and say, ah holders will just take up the offer anyway.

The real question is what is better? Is it better for us to parlay a negative attitude on hotcopper so that Patersons pick up more?? i.e - they are on the hook for more, therefore they will need to promote harder. Or is this just wishful thinking?? (They will just take longer to churn through in the 8 cent region.

Ah its probably better to pick these up ourselves. Get Pattersons out the door and gone. It would be interesting to watch the trades in the 8 cent range of Pattos end up on the hook for a few. If there are funds looking to get in sitting on the sidelines they are about to show their hands imo