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RYG raya group limited

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Ann: Prospectus, page-82

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440ml

568 Posts.

18/01/16

17:58

Post #: 16819441
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Originally posted by TheWagyl ↑

What you've just written is one of the most insanely idiotic things I have ever read. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this thread is now dumber for having read it.

Bonus loyalty options will not be issued and we are better off

The capital structure in place post completion will be much tighter than previously outlined. A tighter capital structure was likely selected in response to investor feedback during the roadshow.

With the exception of 30m options that will be issued to EAS, no further options will be issued. This means that the Xped vendors have cancelled the planned bonus loyalty options, the 55m planned advisor options and their own 320m options.

Existing shareholders will therefore own a larger proportion of the company (~14%) than they would have under the previously proposed structure even with the bonus options. The new structure also benefits holders of RYGOB whereas the previous structure did not.

Projected revenue
The Corporations Act and the ASX listing rules dictate when prospective financial information should be included in a prospectus. This information can only be included if there is a reasonable basis for it. As Xped’s products are in the very early stages of commercialisation and there are no revenue generating contracts, it is not possible to include this information.
Management are not holding anything back. They cannot legally include any prospective financial information in the prospectus as it may be misleading.

Summary of material contracts and the chip maker

Once again, there are rules about what can be listed here. There is no material contract with a chip manufacturer at this stage. Management are not holding anything back, they have provided as much information as is permissible.

“Xped has also been working with two of the worlds’ largest semiconductor chip manufacturers to identify potential opportunities to accelerate the commercialisation of the Xped Technology. Under the Singapore based Partnerships for Capability Transformation (PACT) initiative, one of the semiconductor companies has recently nominated that it intends to collaborate with Xped for the development and test bedding of innovative solutions and products. Both parties are working towards finalising discussions that will provide a framework for the parties to jointly assess and explore new opportunities in the IoT section. Subject to finalisation of such discussions the parties may enter an agreement to formalise their relationship moving forward, however, no such agreement has been entered at this stage."

Once the transaction has been completed and management have approval from the chip maker, we will obviously hear more.

CR price

The CR price was always going to be at a discount. The company is looking to raise capital that if raised will constitute a significant proportion of the company’s market cap.

The CR price could have been slightly higher if the company had used traditional brokerage houses. The company instead conducted a roadshow where they met with strategic targets. This will lead to less churn once the transaction is completed and will mean a higher share price in the long term.

I award you no points, and may God have mercy on your soul.

Expand

I support most of what you've said with the exception of the "much tighter" capital structure. I posted this earlier today to compare today's prospectus offering to what was being suggested in early December. It is true that fewer options (30mil vs 409mil) will be issued but the trade off is that more shares (975mil vs 820mil) will be issued. In addition, there will be 150mil management performance rights granted.

As for the bonus loyalty options announced last year, no mention in prospectus but if this offer is to be rescinded I would think that a separate announcement would be required. What do you think?

RYG Price at posting: 2.8¢ Sentiment: Hold Disclosure: Held
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