So . . . 10 weeks to raise the princely sum of $110,803 from retail holders. Costs of the offer were written up as being $195,978, although this probably blew out considering it was extended 3 times and they engaged a marketing firm to hassle retail holders to take up the rights issue.
Directors and shareholders were said to be supporting the rights issue - yet only 7% of the entitlements were taken up. The rights issue document shows the 4 directors were entitled to more than 3.2 million shares, yet only 3.07 million shares were taken up in total.
The underwriter (Pinnacle Finance) picked up 38,000,000 shares above the directors sub-underwriting and if I understand it correctly, they now control close to 15% of the company at 3.6 cents. Makes them the largest owner of the company by a long way and they picked up a nice underwriting and management fee of around $85,000 for the privilege.
Seems an absolute shocker to me and glad I bailed out when I did (after holding since just after the IPO).
Anyone care to run me through the positives here? Did anyone take up their entitlement?
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