re: Ann: Response to ASX Query re Continuous ... Yunnan rights...

re: Ann: Response to ASX Query re Continuous ... Yunnan rights issue causing angst for ASX.

CITY BEAT: Andrew Main | September 04, 2009
Article from: The Australian.

SHAREMARKET manager ASX Ltd has been playing catch-up with China Yunnan Copper Australia, whose share price jumped 62 per cent on August 31 thanks to some inspired guesswork over a bit of imminent corporate action.

On Tuesday, the company announced a major rights issue to raise more than $4 million, at 15c a pop. That was a modest discount from the level of most of August, when the stock was bobbing around 19c, but the discount deepened more than somewhat when the price jumped from 17.5c to 28.5c on August 31 on massive turnover, which earned a speeding ticket.

Yunnan company secretary Paul Marshall replied with the time-honoured phrase that: "The company is not aware of any information ..." etc, which caused a bit of consternation at ASX's Brisbane office, where Yunnan is headquartered, when Yunnan asked for a trading halt on September 1 pending a raising announcement.

The nice touch in Marshall's explanation is that the "trading activity" that caused the price to run meant that "the brokers to the issue would revisit the prospects of sufficient sub-underwriting support being available". Let's just say the inspired guesswork gave the $4.6m issue, underwritten by BBY, a very handy shove.