One thing to remember after a placement/spp with free attaching...

One thing to remember after a placement/spp with free attaching options is that the options tend to get sold down reasonably quickly, particularly when the underwriters have taken a sizeable position. They are often not buy and hold kinda people - and if they are their clear preference is for the heads.

Consider the placement at 6c, free attaching options, gives the buyer 1c profit or thereabouts on the heads and 1.5c profit or thereabouts on the options. Combined thats around 40% profit in a couple of months. Can understand the profit taking.

All that said, with the heads at 7c, options at the moment are quite undervalued in my opinion considering how close they are to ex price and long expiry. But it is a fluid situation until we know where veremonte are at. I suspect we will know their intentions by the end of this week.