How might the market react to the increased share supply and what is the projected impact on liquidity and price volatility?

The announcement essentially adds a new tranche of shares that can be issued through the convertible‑loan and 2021 stock‑option programmes, together with a share‑combination (reverse split) that will increase the total pool of issuable equity. In the short run most markets treat any dilution‑type news as a bearish catalyst – the extra supply creates downward pressure on the price until the market prices in the expected cash inflow and the purpose of the capital raise. Because Digitalist’s sentiment rating is very high (10) and the issuance is tied to financing instruments rather than a straight‑off public offering, the reaction is likely to be muted: investors will focus on the use‑of‑proceeds (e.g., product rollout, acquisitions, R&D) rather than on pure dilution. If the company outlines a clear earnings‑growth story, the initial dip could be limited to a 2‑4 % pull‑back, after which the stock may recover on the back of the added cash.

From a liquidity standpoint the increased float will tighten bid‑ask spreads and make larger order execution easier, which is a positive for institutional participants. However, the larger supply base also means that any swing in demand – either from option‑exercise activity or from convertible‑loan conversion windows – can amplify price moves, leading to higher intraday volatility, especially around the subscription and conversion dates. Traders should therefore watch the subscription price levels and the timing of conversions; a well‑filled subscription at a modest discount can provide a short‑term buying opportunity on pull‑backs, while a weak take‑up may signal excess supply and justify a more defensive stance. In practice, setting tight stop‑losses around the pre‑announcement support zone and looking for a breakout above the post‑announcement resistance (often the subscription price) will help capture the upside while managing the heightened volatility.