A renoucable rights issue below the market price should give support to the price pre-issue. However in the current market this may not be the case.
The issue at below market price ( to pick up any volume at the moment would require an offer above 6 cents) looks as though it has been aimed at forcing existing shareholders to participate - or give away value for nothing. If the story is correct why underwrite such an issue?
A positive is the converision of debt to equity at a rate of 16 cents per share demonstrating the view of the major shareholder.
I hold MRX and will continue to do so, but I agree it is a longer term prospect.
Immediate reaction seems to indicate bargin huters with orders for a few million at the rights issue price
MRX Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
