Ann: $8M PRIVATE PLACEMENT & LAUNCH OF SPP, page-38

Hi Folks

As a long term retail holder, I am appalled with this share offer. Why?

Well it's like this.

You've supported by membership of your football team for a long and unsuccessful time. Then it looks like they are going to make it to the grand final.

Seats will be allocated not on your membership holding over a long time, but by inviting outside parties to buy seats at a discount to take up 40% of the seats at $500 a seat and then offering existing members a chance a further 5% of the seats at $500 a seat but you might need to order 4 seats and be prepares to pay $2000 to get 1 seat at $500.

Maybe not the best analogy but I hope you get my drift.

Total disregard for older retail holders.

This is way it should have been done. As at the last shareholder register there were
* 136 shareholders with parcels under 1k of shares . Offer to buy them out at 25c per share no brokerage maximum cost $33K clean up the some of
the small parcel share registery . The cost will be more than likely under 25k
Still morally should be offered two times their share holding guaranteed Alternatively Under the current offer they could spend a minimum of 5k to 30K and acquire a further 31250 to 187500 shares, Unlikely but there would be the chance of being whittled down as well. Recommendation chance to clean up the register.

* 370 shareholders with parcels from 1K to 5k. Lots of older retail holders got in 10 to 35 cent range. But also those caught in the spike up to 1.08.
Chance to further reduce and clean up the share register by offering a 25c buy back of holdings under 2.5K
This Mid group, Still should of been given the opportunity to a guarantee buy of 2 times there shareholdings at 16 cent to average down. Alternatively Under the current offer they could spend a minimum of 5k to 30K and acquire a further 31250 to 187500 shares,

* 504 shareholders with parcels from 5K to 10k
should of been given the opportunity to a guarantee buy of 2 times there shareholdings at 16 cent to average down. Alternatively Under the current offer they could spend a minimum of 5k to 30K and acquire a further 31250 to 187500 shares,

* 1037 shareholders with parcels from 10K to 100k
should of been given the opportunity to a guarantee buy of 2 times there shareholdings at 16 cent to average down. Alternatively Under the current offer they could spend a minimum of 5k to 30K and acquire a further 31250 to 187500 shares,

* 339 shareholders with parcels from 100K to Over
should of been given the opportunity to a guarantee buy of 2 times there shareholdings at 16 cent to average down. Alternatively Under the current offer they could spend a minimum of 5k to 30K and acquire a further 31250 to 187500 shares,


The gist of my submission is that the minimum of $5k share purchase scheme is a backslap to all of LBT long term holders especially the smaller holders. No mention at all of what you are currently holding.

Bad management.

I mainly invest in asx300 stocks through my allocated pension with Aus supper however I look across a number of small caps that I thought had promise with a view that by wise selection I might get one in five right.

Of the one in five the following have better promising ones . In order of promise SMN, TLG, BRN
Don't get me wrong I like LBT long term, not great but with promise __But could be much better. Especially
Also there is more than just a chance (using FIB's I suspect) that in the next couple of days that you could buy at 15.5 cents and maybe 14.5 cents.Beating their 16c offer. Very embarrassing. I use FIBs so that I am not surprised by what happens.

PS Just comparing as where I would put 5k into small cap ASX stocks.

Go spend some time to do your research on the following stocks.

$5K investment opportunity cost


LBT last report Mcap 43M current price 0.17 last annual report the basic loss per share was 2.15c per share
Most of the revenue from govn grants

SMN last report Mcap 62M current price 0.525 EBITDA =3.7% per share without CVM revenue which is their main deal. Go figure?

where best to invest 5K


Just my opinions DYOR

Good luck folks

cheer Lies
Times stamp 11 JULy 2020 LBT 17 cents