Ann: Redflow successfully completes $5m Share Purchase Plan, page-25

My 2c worth:

As stated in the announcement on 12th August 2022 :

"...Non-underwritten Share Purchase Plan to raise up to $5 million to be offered to eligible shareholders on the same terms as the Placement"

Others have pointed out that management could not take more money than the $5m, since they made the original announcement above stating that the raising is capped at $5m. Any discussion about the merits or otherwise of capping the SPP ought to have occurred on 12th of August, but not now. If management suddenly accepted oversubscriptions, they would have upset not just large institutional investors but any investors who value the integrity of management (i.e. literally rate and value a stock based on management's track record of delivering on what they say, being honest, etc.).

For those still thinking that accepting over-subscriptions is the lesser evil given the small amount involved, consider the market dynamics...

If everyone gets as many shares as they applied for in the SPP, this completely removes the incremental buyer from the market. The effect this has on the share price is that immediately after completion of the SPP, there are almost no natural buyers and lots and lots of sellers. This can lead to the share price languishing for days, weeks, months. It is one of those nasty psychological effects in share market trading.

Another facet of this involves contemplating what accepting over-subscriptions actually means for the internal employee base. Presumably, management was asked pre the SPP how much money they require to accelerate the growth of the business to achieve very specific goals (hopefully also to achieve profitability of the business at the earliest possible point in time). It is great that they will now receive exactly what they asked for. Although the dollar amount appears relatively small, if over-subscriptions were accepted, it could lead to a certain degree of complacency among employees, where shareholder funds can appear like an unlimited pot of gold and a general loss of spending discipline.

My personal opinion on the "less than 40 shares" cut off is that this probably points to an issue that imho requires far more attention. My guess is that the shareholders with 40 shares were actually shareholders who held RFX prior to the announcement of the SPP, who then immediately offloaded their holding on the announcement of the SPP - except a token amount - and then applied for "cheap" shares under the SPP. This behaviour always leads to a weaker share price between the announcement and completion of the SPP -

AND I HATE IT!!!

I would much prefer that any shareholder who sells a single share post SPP announcement automatically becomes ineligible to participate in the SPP. That might not be fair for some shareholders in very specific circumstances, but I believe it would be fairer to most long term shareholders and lead to less artificial price distortion between the announcement and closure of the SPP.

As for the "cold calling" in relation to the SPP, first for some definitions:

What is cold calling vs warm calling?

Cold calling is when a sales rep calls a prospect who hasn't shown any interest in becoming a customer and might not be aware of your brand. Warm calling is when a rep calls a prospect who has expressed interest in your product or service

Given that you only receive the call since you already are a RFX shareholder, imho you are not being "cold called", but having already shown interest in and purchased shares in RFX, you were asked if you wanted more (sorry, I personally actually did not receive a call). People need to keep in mind that most applications for the SPP were probably received in the final days of the SPP offer, as most investors probably wait to see if they could purchase shares cheaper on-market rather than through the SPP. Hence, though I am not a big fan of marketing calls, I can understand why a company might decide to instigate a follow-up call just to check that people are indeed aware or interested in participating in the SPP. Imagine if you ran a business with a group of friends and the "executive" wanted to raise some funds. That might be announced via a circular e-mail, but it would probably be prudent for the business leader to ensure someone calls each of the friends, just to make sure they are aware...

As for people receiving calls after having already paid their SPP subscription monies... do not mis-over-estimate the technical capabilities of our financial institutions!

Now, with the placement and SPP successfully out of the way, but being mindful of our nearly $140m in accumulated losses... when is our business going to talk about becoming cashflow positive?