I don't agree with your reasoning. If Harlequin wanted to dilute Dingyi then they would have paid 15 cents maximum for the last placement instead of 20 cents when the share price had been hovering around the 18 cent mark. They paid a premium.
It is clearly in Dingyi's best interest for the share price to go as low as possible making a low ball takeover offer more attractive. A low share price makes a takeover offer more viable than a JV partner taking a large stake because the lower the price the more likely that the dilution from a JV partner incoming stake makes the takeover offer more attractive.
A higher share price right now reduces dilution in term sheets put forward for possible JV partners.
K2P Price at posting:
20.5¢ Sentiment: None Disclosure: Held
