placement - question, page-2

  1. 25,292 Posts.
    actually, it is not a bad deal for the company. it raises cash quickly, and the discount is not all that bad. to raise cash from shareholders, would probably need the preparation of a prospectus, and the shares would need to be issued at a discount anyway. the issue that you refer to, would, if offerred to shareholders, have to be a 1 for 13 issue. a lot of shareholders would not take up the issue. frankly, these dog stocks, are not really worth the risk, unless there is some real good reason to get in - apart from wishfull thinking
 
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