Ann: Talga Share Purchase Plan closes early, page-14

bolgo

I am sure that there have been academic studies demonstrating that successful companies display steadily increasing share prices reflecting consistent delivery of operational milestones, while volatility in share prices reflects risk (both upside and downside) but usually does not bode well for a company's risk rating even - or especially - when the price volatility is unrelated to what is happening at an operational level.

To me a successful placement and/or SPP is one that achieves two key objectives:

1.) It manages to raise the capital that the company aimed to raise

AND

2.) The capital raising is conducted with minimal impact on share price volatility.

Your x & y vagaries of the market scenario clearly fails the second objective and it appears TLG management actually agree.

To me early closure of the SPP is certainly welcome (i.e. reducing the period of time of heightened share price volatility), as was the comment from section 4.3.b of the SPP announcement (14.10.2022):

Scale back: To manage the 'cap' in section 4.3(a) and to comply with the terms of ASIC Instrument 2019/547, it may be necessary to scale back an Eligible Shareholder's application, particularly if A$10 million of New Shares are applied for under the SPP. At this stage, the Company intends to apply the scale back by giving priority to applications received on a 'first-come, first-served' basis, however the final decision on how any scale back is conducted will be in the Board's sole discretion, and the Board may take into account a number of factors such as the size of an applicant's shareholding at the Record Date, the extent to which the applicant has sold or purchased shares since the Record Date, whether the applicant has multiple registered holdings and the date on which the application was made.I actually only discovered this little clause now. Looks like they already reward shareholders who purchase during the SPP and punish those who sell.

Actually, I think TLG has done really well on this SPP.

However, I am happy for them to be even more explicit and state categorically that any shareholder selling into the SPP becomes ineligible to participate in SPP.

all imho