Virtually every company on the asx issues shares in order to grow. It is a balancing act notto dilute too much as some have done and I am not even sure they can do a split. I have seen it done though.Richfield is suffering currently from too few shares with only 17 million floating shares and the rest locked up when it listed.
The rights issue is open to anyone. I just think sinotrans can outbid anyone, since they have 11 million shares at 16 cents.
The share placement has been kept quiet. The only discussion about it was 9 months ago. I am just speculating until May 22, because they have to issue the shares, and I can only guess how the chinese operate. I cant see them let a chance like this pass by.
RIS Price at posting:
14.0¢ Sentiment: LT Buy Disclosure: Held
