big picture, page-29

Blackriver,

Actually worth rereading the announcement. There is an interesting footnote on the bottom of page 2.

Salient points being:
1) ASX Rule 7.1 (15%) refers to the placement only, NOT the SPP.
2) For the SPP they are allowed to issue up to 30% without a vote.
3) They have expressly said (in the footnote) that above USD 25mm they will exercise their discretion.

This leaves me pondering several points.
1) Relying on the vagaries of SPP's for the bulk of a capital raising is unusual. They only used about 10% of the 15% allowed for the placement, yet said it was HEAVILY oversubscribed. Usually companies go over the 15%, conditional on retrospective approval, and they also would often take oversubscriptions.
2) With over 15,000 shareholders (07 AR), full take up A$150mm, but the 30% limits them to about half that, and the USD25mm target only requires about a 25% takeup.
3) Have they got a plan to give the sp a boost before the SPP closes, or can they cope happily with little more than the USD14mm raised so far?

EL