re: Ann: Withdrawal of Rights Issue and Reven...
b_p, 100% agree about the copybook, but if there was a potential bid for Solco being sized up, then the shareprice would almost certainly already be moving up on increased volume, not down on decreasing volume. Apart from the difficulty in preventing some degree of insider trading with so many people involved, it is also entirely in Solco's interests to make sure a leak happens so the bidder has to pay a higher price.
If the reason offered is true, it is bizarre at least, and probably a lot worse than that.
If the reason offered isn't true, then that is at least a disgraceful disregard for shareholders, and very possibly something ASIC should investigate. Investing is hard enough without management flat out lying to us.
On reflection, I think the board probably signed an excessively one-sided "fair-weather" underwriting agreement and due to global market volatility, MeFirst decided to exercise their option to not underwrite after-all. Rather than admit their mistake, I think the Board scrambled to make an excuse. It's a pity they threw Solco under the bus in the process.
Hopefully this was just a collective brain-snap by the board, and it will be taken as a lesson well learned and Solco can move forward from here. I think the shareholders, and the market in general, deserve an explanation and an apology, but that would be even rarer than an underwritten capital raising being pulled because it wasn't dilutitive enough!
GOE Price at posting:
7.0¢ Sentiment: Sell Disclosure: Not Held
