Raising capital without destroying shareholder value

Clime Asset Management

When it comes to raising capital, one aspect that requires more attention than it generally receives is how the structure can significantly affect the outcome. We believe management should seek to minimise the dilution of existing shareholders to preserve the share price and maintain control over the share register. Raisings should also be timed at points of strength rather than weakness wherever possible. In this report Damen compares two Clime held businesses who recently underwent capital raising - one executed effectively and the other not so well. (VIEW LINK)


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