Management of every ASX-listed company automatically have the right to issue up to 15%, and then at the AGM or an extraordinary meeting they can ask shareholders to approve them to do another 10% - which they don't necessarily have to use straight away but have to use before the next AGM or lose it. I believe that the extra 10% was approved at last years AGM - with the new AGM just a few weeks away that may explain the rush to raise now - because they want 25%. That is why I think we need to vote against the 10% resolution at this year's AGM - because quite frankly we don't trust their day to day management of the company....
A raising VWAP can be based on the VWAP of the previous five trading days - and just because a company offers a placement doesn't mean that investors will take it up.
Today was another example of just how badly organised management is - the chairman didn't just suddenly wake up at 6.30am Perth time and say "what a nice day - lets do a capraise!" - this has obviously been in the planning for at least a week but they didn't have their request for a trading halt notice prepared in time so they had to ring **promotion blocked** and get a temporary pause in trading put in place until they could get their request for a trading halt notice done and submitted. We seriously need a change in management!
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