Australia's largest stock trading and investment forum Australia's #1 stock forum

OGX

Click for more information

0.00%

0.3¢ orinoco gold limited

100 % Placement Capacity -Ref in ASX Listing Rule ?, page-2

First 2 Last

Share
Profile

Follow
sirjohnnyboy

2,599 Posts.

1713

22/03/19

19:57

Post #: 37857887
Share

Originally posted by Saltiga62: ↑

So can those more informed please give reference to the section of the ASX Listing Rules that allows 100% placement to occur.

Especially with out prior approval being granted .

Extracts
A key requirement of the new listing rule is that companies must get
75% shareholder approval at an AGM -(not any general meeting)by 75% of voting share holders .
Andmust exclude any shareholders who are likely to benefit from any subsequent placement under the rule.
This could make approval difficult given that any large institutional shareholders on the register (who would likely stand to benefit from the issue) would be excluded from voting.

So normally the combination of 10% Raise 7 extra 15% placement capacity if pre approved by share holders combined
equates to a maximum of 25 % therefore protecting share holders by limiting the maximum dilution to the registry
& share holders in any one year .
Example to raise at 0 .0032 & raise 5 mil Au results in the issue of 1,562,500,000 shares , so thats exceeds 100% of the registry,
SEEMS TOTALLY ridiculous actually.
ASX Listing Rule 7.1
Listed entities outside of the S&P/ASX300 with a market cap of $300 million or less will be able to seek
shareholder approval toraise10 per cent of issuedcapitalper year via placement.
This 10 per cent is in addition to the current 15 per cent placement capacity under Listing Rule 7.1.Aug 1, 2012
Interaction between listing rules 7.1 and 7.1A
Under listing rule 7.1, every listed entity has the ability to issue 15% ofits issued capital without security holder approval in
a 12 month period.
Only eligible entities that have obtained security holder approval by special resolution at an AGM have the ability to
issue an additional 10%of issued capital in a 12 month period under listing rule 7.1

Rule 7.2
25% limit on discount to volume weighted average price at time of issue
The issue price of securities issued under listing rule 7.1A mustbe no lower than 75% of the volume weighted
average price for securities in the relevant quoted class calculated over the 15 trading days on which trades in
that class were conducted immediately before either:(a) the date on which the securities are issued; or
(b) the date on which the price of the securities is agreed, provided that the issue is thereafter completed within 5 business days.

Setting the maximum discount by reference to a VWAP figure calculated over a period of 15 trading days should limit
the potential for securities to be issued under listing rule 7.1A at a discount to a short term low market price.
In recognition of the market practice that a listed entity and potential allottees of securities will come to an agreement
about the issue price of the securities a short time before the issue actually takes place, and that they must be able to
tell whether the price that they have agreed complies with the listing rule, the maximum discount can be calculated by
reference to the VWAP over the 15 trading days on which trades in the equity securities were recorded before the
agreement is reached.
In this case, the issue must be completed (that is, payment for the securities must be received, and the securities issued
into the electronic holdings of the allottees) within 5 business days after the agreement of the issue price.

Otherwise the calculation must be performed by reference to the 15 trading days on which trades were recorded before
the issue date.

https://www.corrs.com.au/thinking/insights/new-asx-placement-rules-for-small-to-mid-caps-will-they-work/
27 August 2012|By Simon Morris (Special Counsel)Special Counsel. Melbourne+61 3 9672 3201

Extrac-A key requirement of the new listing rule is that companies must get 75% shareholder approval at an AGM(not any general meeting)andmust exclude any shareholders who are likely to benefit from any subsequent placement under the rule. This could make approval difficult given that any large institutional shareholders on the register (who would likely stand to benefit from the issue) would be excluded from voting.
Any one in the know how a plus 100% placement can occur especially without prior 75% share holder approval ?
What section of the Asx listing rules sets out the guidelines for this to occur ?

salt

Expand

Hi Salt,

This is outside my area of expertise, but it certainly looks to hold some promise.

There should be urgent legislation to force companies to keep funded for 12 months of operations, and remove this contrived trick of creating an emergency via the threat of insolvency or the risk of being unviable.

Cheers,

SJB

OGX Price at posting: 0.4¢ Sentiment: None Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

AML

Cultural heritage agreement puts Walford Creek exploration back on the map

FHE

Frontier Energy achieves key milestone for Waroona energy project

With financials holding the fort, materials must step up with some heavy lifting to stimulate stocks

ASX Market Update: Shares fall flat as GYG soars on debut | 20 June, 2024

STX

Strike Energy secures $153 million for Perth Basin gas projects

EMD

Emyria's Empax Centre chosen for mental health clinical trial

RDN

If you thought lithium was dead, think again. The Pilbara will be central to the next upswing

SBW

Shekel Brainweigh CEO Nir Leshem weighs in on AI adoption ahead of FY25

BRX

Belararox delineates another porphyry in Argentina at Tambo South

Plagues precede widespread power shifts. We’re living in one – and minerals are at the fore

There are more pages in this discussion • 1 more message in this thread...

First 2 Last

Add OGX (ASX) to my watchlist

SPONSORED BY