I don't see the point of the dividend either. It seems lots of...

I don't see the point of the dividend either. It seems lots of wastage of resources for this exercise. DRP is certainly not a free exercise.

- If everyone subscribe to the DRP, the company gains little, apart from its reputation because it promised a dividend.

- If few people subscribe to DRP, then the company is wasting cash on giving out dividend (note, this DRP is not underwritten)

It looks like lose-lose, but i may be missing something. I will like to know the management rational for this exercise.

I sure expect management to take 100% DRP shares, what will it say about them if they don't?

The reason why people will subscribe is to ensure they are not being diluted through the exercise.

Now the risk is price might fall below 0.025 even before ex-divd (which it really shouldn't!)! Even if it stays above it, investor will still be wary of it falling ex-divd.