Ann: Application for quotation of securities - RAC, page-33

@ralom

that would be very expensive for very little value in this situation. Underwriting fees are around 5% to 7.5%. For a small $6m raise, it will be on the higher end.

$6m x 7.5% = $450,000 fee.

with 1.5 weeks to go bonus options are close to the 75 % target with “free” underwriting from loyal shareholders (including me, I have given RAC my $ commitment to take up any short fall, but I don’t expect to receive much or any), and from unknown (new?) institutional investors.

So in hindsight, Race made the right decision.

I also suggested to Dr T, if legally possible, Race should keep and exercise any bonus shortfall, after 75% minimum is reached.

The new shares & Piggies will be so value in future. They can then offer these to new institutional investors that want to get in on a large price spike after some good fundamental news. This will add a bonus to Race’s cash position.