I feel like I’m on looney pills - how is this great news?Y'all a week ago people were being slammed on here for saying dilute might come from fronterra issuing a loan with rights to shares at $.50 usd.
Today, we effectively got our holdings halved. This is the same as if fronterra issued 330M new shares, and what price did we get? Well, if we take the $117m number that's jusr a tad over $.35 (117/330)
This is not the worst thing that could happen since we have little protection as minority shareholders but it's hardly the ideal either. It is a clear act of desperation, and means our WI will be 10-15% if an when a major buys in.
why the leaps of joy? It's a day to grit and bear through and re evaluate R:R