I wonder about this theory that shares get pumped for...

I wonder about this theory that shares get pumped for Placements.
Like who is suspected of orchestrating this[making it happen]?

Can't be Management/Directors.That'd have to be 'illegal' surely under ASIC rules.Spending Company money to buy shares on Market so you can sell/place a whack at a discount to say 21 day VWAP.

Is it the Broker handling the Placement?
Pretty 'mean' trick on the Sophisticated Investors,isn't it?Wouldn't they feel; 'cheated' of their discount for bulk,supposedly set for the Placement?

It could be caused by a Requirement to hold X number of Shares so one can participate in the Placement.
That'd be sort of 'fair' instead of Placement going to Sophistos who have no Interest whatsoever in the Company 'Story' and only want to get discount shares to 'distribute' to Legitimate Shareholders.

I'd think that Management could be in a position from these Drilling Reports etc to go for Raising a Lot of Capital to commence production in the next year.
This would or SHOULD require All Shareholder Inclusion along with a Placement.[Rights/Options Issue to All at whatever the Placement Price is]

AQR has a 'problem' with this because Directors hold a Significant proportion of Shares on Issue.
To participate in a Rights Issue they have to have the Money to 'put in'/participate.
Round the Board Table,they find they don't have this money?
well,they vote for Placements only instead and dilute/momentum kill the share price of us minor shareholders.

Placements are a real rort in our ShareMarket.The 'reasoning' behind them [that a Company doesn't have to issue a Prospectus to All Shareholders 'convincing' All of the Merits/Use of these Funds]is flawed.
Instead of a Prospectus,they just issue a few million shares to the Sophisticated/High Nett Worth Crowd at a Deep Discount so 'they' can arbitrage out a few buck$$ from us 'others'.

Anyhow,with only 3 months cash burn left in the bank,some kinda Capital Raising is ON.Just hope that Management is 'Sophisticated' enough to give All of us a crack at it.

Happy Trading.