Completely agree @wobblyboots, whoever made the call to pull the trigger on the capital raise that was dependent on the secondary market holding up has really done the business a dis-service. The business will only make the mistake once raising funds leading into EOFY, the tax loss selling that has since played out in the small cap space has been significant this year.
I don't think extending the closing date will do them any favours, just bite the bullet, take the pre-committed $1.5mil in the placement and move on. I'd be very surprised even if 10% of shareholders accepted the 1:11 rights issue even if the price was above the offer price.
To be honest it's not worth the time even opening the mail to consider the deal, the 1:3 options on the rights issue is not enticing enough to warrant consideration in my opinion. Looks as though they were stitched up by Paterson's promising to underwrite the transaction, which then was cancelled.
CVT Price at posting:
2.4¢ Sentiment: Hold Disclosure: Held
