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Have sub-placing priced shares in Obtala hit a level of support? (OBT)

Obtala Limited (LSE:OBT) recently raised £4.5m in a placing at 12.5p to fund an acquisition and expand its existing forestry business. Directors subscribed for an aggregate £1.1m as part of the fundraising. As part of the deal, one for one warrants were also issued with an exercisable price of 20p. As is often the case when warrants are on offer, the share price has slumped a little under the placing price. However, the chart does imply decent support around 10.5p after seeing a decent bounce off 10p this week. Should this fail, 9.25p appears to be the next level of support. After peaking at 22p last Summer, the current price weakness could offer a good risk/reward level for entry.

Author: Stuart Langelaan

Disclosure:
The author of this piece owns shares in the company written about above

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