It doesn't matter whether the oppies are listed or not. They have intrinsic value which I estimate at around 2.5c if/when AYN trades in the low 4c area. No sophisticated investor in their right mind pays 20% more for a share in a falling market unless they see intrinsic value in the deal. At 3.6c for the fpo's the investors are under water on their whole investment because the intrinsic value of the oppies would have fallen to maybe 2.2c which values their investment at 4.7c or lower.
I for one would have entered such a deal with the aim of off loading the fpo and retaining the options. My hope would have been to sell higher than 4.8c or at least in the mid 4c level. Shares touched 3.7c today so why would you even contemplate taking part in the retail raising if it is on the same terms? Smart money walks away or at worst buys on market, those who have fallen in love with the company will take part in the share placement. Now if AYN is trading above 4.8c when the retail investment opens then that's another story.
AYN Price at posting:
2.4¢ Sentiment: None Disclosure: Not Held
