Think this is what you are looking for: Car Parking Capital...

Think this is what you are looking for:

Car Parking Capital Raising

Last week Car Parking Technologies [ASX: CPZ] confirmed the successful completion of a $15 million capital raising.

The offer was only available to institutions and "sophisticated investors". So, sadly, most shareholders could not take part.

(By the way, I'm not saying you're not sophisticated. "Sophisticated investor" is a regulatory term to describe investors that have an income of more than $250,000 for the last two years, and net assets of at least $2.5 million).

But even "sophisticated" investors could only buy the discounted shares was if they were a client of E.L. & C. Baillieu Stockbroking.

I'll be frank. I'm not a fan of companies that leave shareholders in the cold on capital raisings. Although I do understand why they do it. A capital raising from institutions and sophisticated investors requires less paperwork for the company and means it gets the cash sooner.

(In fact, the first stack of cash from the placement ($6.57 million) should already be in the company's bank account. The rest ($8.43 million) should be in the company's coffers soon after the new year. The shareholders just need to approve it at the 22 December general meeting.)

By contrast, an offer to all shareholders involves a whole lot of paperwork – a prospectus, forms, fees to the share registry for handling the paperwork, and so on... And it takes longer to get the cash.

But enough griping...

The company will use the cash raised from the placement to pay for the takeover of Town & City Parking in the U.K. If you recall, Town & City operates over 1,100 car parks in the U.K.

The funding for the takeover was always going to come from shareholder funds rather than cash flow. So it was just a case of whether it happened sooner or later.

Now, I suggested you remove any trailing stop order you had on this stock. Simply to avoid accidentally selling the stock if the share price briefly fell. And as expected the share price has fallen to around 30 cents.

That nearly always happens when shares are offered at a discount to the market price.

But with the capital raising almost complete and the share price stabilised, it's a good time to reset the trailing stop level. Based on recent price action, I've set the new trailing stop level at 27 cents.