I have lost around $30,000 in RFG already. Is it worth participating in the SPP to bring my average buy down in the hope I can recoup some of my money?
A: On the one hand, the SPP is at 10c and the shares are currently trading at 14c. On the other hand, the company has been a dog, the funds being raised are being used to repay debt, it has regulatory and class action risks hanging over it, it has strained relationships with some of its franchisees and I am not convinced that the management team can turn it around.
I guess I would sell some shares on market now and then buy them back in the SPP. I am not sure I would be keen to increase my exposure. RFG can only be described as ‘high risk”.
