When is an underwritten share issue not underwritten?
- Thread starter markrmau
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Knobby22
Mmmmmm 2nd breakfast
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markrmau said:Look at the conditions on NMS underwriting agreement with pattersons.
If SP falls below 20c pattersons can run away.
I have never seen something like this before. Has anyone else?
No! Whats the point of paying big fees to the underwriter then?
The main purposes of having underwriters is:
to ensure the raising takes place and;
to give confidence to the investors that the underwriter has studied the company and knows its value so investors can buy with some confidence.
This fails on both counts.
