It’s funny how we all welcomed the $1.5m exercise of the Directors options including the underwriting of the shortfall. In fact we were counting on it.
Now it’s the end of the World because we propose to raise $6m (only 4 times) at 7c a 2c premium to those 5c Director options, with the 2:3 options out of the money at 10c.
As Protagonist points out, this issue is the same price as the last placement, when we were trading over 9 cents before that CR. Fact is when they set prices for these CRs they look at the vwap of the last 1, 2 or 3 weeks. Our vwap would be significantly lower for this CR than the previous one. Also last raise the option ex price was lower than the last traded price and it was 1:1, so they’re doing this CR on better terms
We still don’t know if they’ll raise the full $6m - so wait & see.
Is the company in a better position post this CR - yes
In the big picture, we are well financed with construction underway. The company is in a far better position than it was 6, 12, or 18 months ago.
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