Panthera Resources Announces Equity Issue to Settle Warrant Conversion and Fees
Why we think this is bad
The significant 46.98% discount to the previous closing price at which Panthera Resources is issuing new shares is a major concern. A discount of this magnitude suggests low investor appetite for the company's shares and could put significant downward pressure on the share price. For a micro-cap company like Panthera, such a large discount is an especially negative sign.
Key Points
- Panthera Resources issuing 881,748 new shares
- Shares issued at 6.84p, a 46.98% discount to previous close of 12.60p
- Raise of £33,400 to settle warrant conversion and director fees
Summary
Panthera Resources has announced the issue of 881,748 new ordinary shares to settle certain director and warrant conversion. The new shares are being issued at an average price of 6.84 pence per share, representing a 46.98% discount to the previous closing price of 12.60 pence. While the raise is relatively small at £33,400, the significant discount suggests low investor appetite and could put downward pressure on the share price. The purpose of the raise is to settle a warrant conversion and director fees, which are neutral factors.