Ann: Renounceable Rights Issue to raise up to $6.2M, page-199

Hey mate, been in transit/busy last few days so haven't been paying a whole lot of attention to the threads/discussion here.

Given the last few Ann has alluded to a near-term CR it shouldn't come as a shock but TBH, I am surprised this is the way Mgt have chosen to go about it. The path of least resistance and minimal effort/time would have been via sophs and/or AM's $$$ connections I would have thought ??

Not sure how others feel but I would prefer JZ & Mgt were focusing on achieving other critical milestones right now and not having to manage a drawn out process this appears to entail. On the flip side, they have always been pretty 'SH friendly' given Mgt/family/friends have been sitting on decent sized positions for several years now... Rabbit hat trick perhaps ?


As some ppl have alluded to, it is very rare for a junior to go about a renounceable rights offer? I haven't looked into this a great deal but guessing it is probably because of the risks associated with it. Eg. given ppl have the opportunity to trade/sell their rights, if a decent sell off/dump occurs from frustrated holders, then it doesn't give holders much confidence or motivation to participate in the raise which will further hurt sentiment & the SP.

With that in mind and as a few others have mentioned, this raise NEEDS to be supported with some good news for it to work. Sentiment/patience is pretty shot ATM and the company desperately needs some decent MILESTONE news to give SH's some confidence and motivation to participate in the rights issue. Mgt aren't stupid and have probably had this in the pipeline for awhile waiting for a few ducks to line up before putting it out there.

Based on that, I am pretty confident a S1 OT (maybe some increased S2 vol > 500Tpa) will be announced towards the end of next week/after the ex date, confirming the rumoured Japanese OT'er.

This should help get the SP back into the higher teens making the offer much more attractive than it currently looks at present.


Geez I hope my read on this is right

Fingers x - GLTAH