rgupta
Regular
I assume in the real world it should be like that. But on the other hand as a financial institution you are only worried about your profits. Now with every contract there are some side adjustments, like from day one there is no announcement during LDA sell off, that can be by chance and can also be part of deal. 40 million is approximately 2% of equity.g'day rgupta,
Shares can only be traded in the stated times as per the ASX announcement.
Imagine you are LDA. You renegotiate your longstanding, existing deal with BRN in late December. (yes, only months after they cheated on you with someone else). The SP is around 40 cents. BRN want to raise $20M and give you 40,000,000 shares to achieve that goal. Not hard!!! With some good news the SP will be north of 50 cents.
BRN will meet their obligation to LDA, Share holders will be happy and.....
LDA only had to man the trading desks for 2 months to earn their commission.
Nope,
As LDA, you lose time as BRN keep doing piss poor raises at smaller prices. You need to keep manning the trading desk over longer periods just to raise the $20M they agreed to. Shit for you, shit for shareholders.......
But there must be a win for someone........otherwise this makes no sense.
Now look at the deal LDA with help Brianchip raise a certain amount of money. There will be no loan but an arrangement where LDA will sell shares, keep their profits and provide the rest of money to brainchip.
So in the same capital raise there is no condition what will be the minimum sp or maximum sp. So to make sure company is floatable up to that much raise mean they can manipulate the sp as well.
So if they are allowed to manipulate then what they will do?
Dyor