WMT western metals limited

Rights Issue deferred - drops to 2c

  1. 648 Posts.
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    Western Metals has decided not to proceed with its rights issue and the stock has dropped 20% in the last two days

    As stated by the company the rights issue arrangement involved the company completing a proposed renounceable 1:2 Rights Issue to Shareholders, intended to raise equity of approximately AUD$20 million. It was foreshadowed in the Explanatory Memorandum that circumstances could arise where the Rights Issue is delayed or does not proceed.

    Well what are the circumstances. Does the company now hav enough money to survive. Does the company not have enough money and it is proposed to let it go into receivership so that they can gain full control ala Pasminco. One of the directors ploughed over $200,000 into this company 6 weeks ago, he has since lost half of his money.
    Some more information would be desirable from this company which has continued to let shareholoders down again and again.
 
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