resolution 8 is asking for tzl to issue 10% more shares than 15% which will be allowed. so i guess this mean tzl will issue 25 % shares in next 12 months . please can some one explain what is this for because tzl already has $4 m and will get another $4 m from options . total $8 m for 12 months when cash outflow only should be $2.5 m for next 12 months. so what will tzl plan to do with $5.5 m ($8 m - $2.5 m spend) AND 25 % shares issue which at 10 c = 200 m x 25 % = 50 m shares = $ 5 m. TOTAL $10.5 m extra for next 12 months even if capital raising is at low 10 c.
i think this all needs to be explained at the agm because i donot understand this. the table on page 19 shows dilution from 10% placement but obviosly 10% placement will only happen if 15% is done before. So should table not show effect of 25% dilution. all to much mystery for me.
also please on resolution 6 why does company ask us to approve underwriter options of 4 m options or risk tzl to pay $40607.25? i think it is better for tzl to pay this small money than for my shares to be diluted by so may options.
i think tzl is very good buy but i am worried about giving shares away in advance if we donot know what this is for. please explain tzl. if you have very big deal coming please can you give a clue and make sure to raise placement at high price as you will not offer this to supporters like me. thanks
TZL Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
