The IPO will be in the US, on Nasdaq, I believe. You will not, therefore, be invited to partake unless unusual circumstances arise, e.g., difficulty in conscripting the minimum number of shareholders required for a float.
The purpose of the float is to raise the serious money needed leading up to the satellite launch, from the customers of Spacelink, conjoining all their interested in one. Who better than those committed to signing up as customers to have as shareholders too because they are already committed to the belief that it is going to work? At the same time they will be the best ambassadors for the company with others in their own industries..
These prospective customers have already displayed in their strong interest. They include the cream of the first world’s communications, satellite, defence and space organisations. Their take up is to be linked via, but not exclusively, through the convertible notes they will have taken up prior to the float. I love the 20% fee! Thank you for the reminder Pardner.
Now do not fret. As little Aussie shareholders you will all have been a nuisance in the US float but by remaining shareholders in EOS you will have lost little or nothing because you will have a leveraged, indirect proprietorship in the US company which is going to be very much bigger than EOS as it is now.
The capitalisation of Spacelink will be a multiple of todays’ EOS and EOS’ market capitalisation will respond accordingly.
The structure of the note issue intertwined with the float has been brilliantly designed by Ben Greene and his incredibly talented associates and I take my hat off to them. At the time of the float they will only release into the market the minimum number of shares they need to, holding on to the balance until the next tranche (once again strictly limited) and the next tranche, etc. The number of tranches does not yet need to be decided upon. The proportion of shares to be retained will have been planned, however, although that too may not be final.
Were EOS to release into the market all the shares they were prepared to yield to the public they would all be issued at the same price, probably the lowest price Spacelink will ever see.
On the other hand, by staging the release of shares in tranches the prices received for them will be progressively higher. Why is EOS confident that the issue prices will be progressively higher? Because the share issues will be timed to benefit from critical announcements over which EOS has absolute control as to content and timing. Some of those announcements could be probably be drafted now. And all the money is not needed at once anyway.
Expand
(20min delay)