Ann: Extension of Non-Renounceable Entitlement Offer, page-48

Here’s why I’m calling it unfair and against anything ethical on a human level. If I sold now I’d be down $160000 plus. Here’s an idea. Sell BV if they can’t get it off the ground. Anyways.

1. Non-Renounceable Structure Kills FlexibilityThe offer’s non-renounceable, so we can’t sell our rights to buy new shares at $0.002 (Prospectus, Section 2.2). If you don’t cough up cash by 24 June, you cop 50% dilution (e.g., 100,000 shares at 0.0089% drops to 0.0045% post-offer, Section 1.7). A renounceable offer would let us sell those rights on the ASX to recoup some value, but MGU’s forcing us to either pay up or get diluted. After the last offer tanked (closed 26 May without minimum subscription, ASX Release), who’s rushing to pour more money in with no exit option?

2. Recycling a Failed OfferThe Board’s re-running the same offer ($0.002, 1:1 ratio) that flopped last month, with no clear changes except a shortfall facility (Section 2.6). With no minimum subscription (Section 2.5), even a weak uptake could leave MGU short on cash, especially with only $356k in the bank (31 Dec 2024, Section 3.4). Why not switch to a renounceable offer or try something new after the May failure?

3. No Word on External FundingWhy are we retail shareholders footing the bill instead of the company chasing institutional investors or debt? The Prospectus hints debt could be restrictive (Section 5.2), but there’s no explanation of what else they tried. With a “going concern” warning hanging over them, it feels like we’re being asked to bail out MGU because they couldn’t find better options.

4. Dilution Hammers Big HoldersFor those with big positions (mine’s deep into six figures), 50% dilution could gut our portfolios. At $0.007, my holding’s already hurting, and not participating could make it worse. The Board calls the $0.002 price a “reward” (ASX Release), but without selling rights, it’s a forced gamble on risky projects like Palmares and Buena Vista (Section 3F.1), with no near-term wins spelled out (Section 5.2).

5. Communication’s LackingGetting straight answers from MGU has been tough—my emails often went unanswered until I pushed. The Prospectus leans on ASX updates (Section 6.2), but where’s the real engagement for us long-term holders?

A shareholder call or detailed project update would help rebuild trust, especially with confidence this low post-May.I’m stuck. Participating avoids dilution but risks more losses on a stock that’s bled value. Selling shares now (can do anytime, Section 4.1(f)) means eating a loss at $0.007 or less, and liquidity’s thin (average ~1.17M shares/day, recent data). Doing nothing screws me with dilution. As a family man, this offer feels like a trap—pay or lose big. This whole situation feels like a huge trap and there’s no way out.