By Tim - http://stockstobuy.org
I took the time to email Samson Oil & Gas Limited (SSN)on Friday regarding the recent trading halt. I basically asked them why they needed to halt the stock for a capital raise. The response was what I was expecting to hear and is very reassuring.
Tim,
The reason that we halted trading is that under australian corporate law it is illegal to not have a fully informed market, as is the case in the US. When a company is doing a capital raise it is impossible to achieve that if we are talking to potential investors about purchasing shares. Accordingly to ensure that the people outside of those who might be taking new shares are not disadvantaged the practice is to undergo a halt whilst that transaction is complete. It is in my view the most ethical and fair way to achieve a limited capital raise.
Regards,
Terry Barr
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