IMF dilution threat

IMF's capital raising makes sense, but shareholders could face dilution beyond because of the litigator's decision to redeem convertible notes.

There’s nothing like a bit of pressure to ensure a successful capital raising, and retail shareholders in litigation funder IMF Australia (IMF) are likely to be feeling a fair bit of that in the wake of the company’s $40 million plus raising.

While the timing and purpose of the new equity sale make a lot of sense, ordinary shareholders who choose not to take up their entitlements could face dilution that is well beyond the impact of the capital raising.

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