It would be great but to be honest not likely, once approved its pretty much free money for the company and usually done as soon as the share price spikes, probably why its not spiking hard right now, a CR is hardly ever dropped once approved with ASX companies.
If they come out and flat out said they would cancel it then it would be a different story but more likely they will keep the option in their back pocket, and something us holders need to keep in mind, before celebrating any spike in price you need to know the spike is probably going to be followed by the announcement of CR, which will dilute and bring the price back down, the CR prob the worst thing management could of asked for and for us shareholders (not me) to approve. The positive is though we have a time period of 3 months, unless ASX allows more, so if they havent done it by then full steam ahead ! This from latest ann on CR "MMJ would have up to three months from the date of approval to issue shares under the SPP (or a longer period if allowed by the ASX)"
Doing some quick calcs, if they offered the CR at discount (which is mandated at max 20% discount of 5 day vwap) after a few days rising share price, lets say SP gets to 32 cents , they then do the CR and offer price (20% discount would be 25.5cents), its means another 39 215 686 shares would come onto market, 17.4% of issued capital, this is definitely hindering any large spiked up in price, thanks Jason for your parting gift !
MMJ Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
