Yeah, hard to predict the shareholder reaction. My guess is just the authorisation may have a decent sized reaction, but who knows? Maybe volume will wait for the initial proposed Rights Offering?
Definitely each further placement where authorised shares are actually registered and offered or placed will also have a reaction. In the other similar oil company they doubled the shares issued, 100% dilution, and the share price continued up. Then they did a smaller placement on the way down, and the price continued down and perhaps accelerated.
So obviously the reaction can be either way, depending on whether the shareholders and potential shareholders see the move as positive or negative.
I also agree the initial Rights Offering will be a huge influence. While I've decided I support Proposal 1 and 2 and will vote my shares 'yes' for both of them, I won't know if I want to put more money at risk in the Rights Offering - or by buying at market - until I see the terms and the market reaction.
Should the ERHE share price be low at the time of the offering it may have to be postponed or modified as to its size on that basis. It will be interesting to watch.
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