Very disappointed by the CR, looking at the positives....
-Will allow for rapid expansion into different fields which may include manufacturing their own products.....
-Will give them leverage in any future negotiations with companies wanting to leverage their technology.
Looking at the negatives which are far more glaring.....
-Why the hell couldn't this money be raised by directors exercising their options? They have enough and being a director is a two way street, if you've been fortunate enough to be granted the options in the first place exercise them when it comes to the company needing money. A 3 way benefit will then extend from this i) further dilution is avoided ii) the general market will be encouraged by directors/management purchasing iii) directors/management will then be incentivised to work harder owning a bigger piece of the pie.
-Why aren't (if the AFR is to be believed) retail investors going to be allowed to participate in this. People will respond but "speed is of the essence!" although this response falls flat with me. The best, most equable example of a CR I've ever seen was the one recently conducted by AHZ in the form of a RI at a big discount. This rewarded ALL shareholders equally in proportion to their holdings.
Overall, my feelings at this stage which could change as further facts emerge is that retail shareholders have been treated very badly at the expense of sophisticated investors and fund managers which is shameful considering the amount of support they (retail investors) have afforded management/directors in the past. Although I suppose by now this is the norm and to be expected.
ADO Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
