How is it a good strategy? It pushes the price down, hurts the...

How is it a good strategy? It pushes the price down, hurts the TA (breaks it), dilution as it gives a lot of stock away for less money in return......RXL is disappointing as it has three key plays that are top class potentially but it has a poor register. It does need a month to reverse trend.

If you think about it, this SPP encourages selling as the placement is always 20% below the VWAP. So it is always more expensive so shareholders sell to buy back cheaper. Could have raised higher if they had some better brokers behind them. It's a shame because RXL from my geo mates perspective is one of the best plays from a resource perspective. However, they can't seem to get themselves out of the SP hole.