Australia's largest stock trading and investment forum Australia's #1 stock forum

TPS

Click for more information

0.00%

3.8¢ threat protect australia limited

Ann: Threat Protect Major Acquisition and $49m Funding Package, page-12

First 12 Last

Share
Profile

Follow
Veritus

40 Posts.

7

05/03/19

19:49

Post #: 37662430
Share

Originally posted by Biscuit4101: ↑

Hi dustfarmer, it is a little unusual for a raise to be at a premium to market price, but the rationale is sound.

Usually it happens when a buyer wants a large chunk of the equity in a thinly traded company (so they couldn't buy on market).

So in this case First Samuel are accumulating and need to pay a premium to get the volume they want.

Now the rights issue to ordinary holders could have been done as a requirement, because (I could be wrong here) you can't raise more than 15% of your equity through a private placement (you have to offer it to everyone). Given that FS have underwritten the rights issue, I would think that they are happy to get the $5m in addition to the $9m they have converted from debt and the $1m they picked up in January.

Hope that makes sense! Essentially the rights issue has to be at that price because thats what FS are paying, and the rights issue is essentially a quasi-sale of more equity to FS.

Expand

I see, if FS bought online $ xxxxxx Mill

then the price of shares would have gone to $ 1.00.....so 25 would have been the cheaper premium...for them,

TPS Price at posting: 21.0¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

HotCopper Highlights: Your most watched stocks for Week 48, 2024

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

Ice-cold winner: Cryopreserver Vitrafy escapes November's IPO struggles to end debut week higher

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Dale Gillham's weekly wrap: Bold moves in NZ, caution in Australia

ADD

Parkes Au-Cu project to 'transform' Adavale Resources with key targets

Week 48 Wrap: ASX flirts with 8,500pts; APRA declines mortgage loan easing; Trump's Bessent tied to Dem donor

RSG

Resolute shares bounce back as second payment made to Mali government to secure workers' release

There are more pages in this discussion • 1 more message in this thread...

First 12 Last

Add TPS (ASX) to my watchlist