This Co is headed in the right direction but the way they executed this Cap raise is abysmal
they are clueless
they have used existing options as a 'lure' for both the sophs and retail yet by doing so, undermined the value of both the ordinary shares (dilution) and issued options (available liquidity )
as a class of options approaches the expiry date you don't issue more of them.. you initiate a new class of option with a 2-3 year expiry but they were too lazy to do so
furthermore if they had just issued ordinary shares ( no options) and raised at 0.020 ( a bigger discount ) we might see the ordinaries stabilizing by now but what will happen as a result of the oppies is that sophs can drip feed heads to free carry their oppies or vis versa whereby any appreciation in oppies just gets sold into by sophs to recoup their investment
retailers get dragged into a vortex SPP where the oppies lure on paper gives them a kind of break even but it's a false economy because the fully diluted MC has to take into account heads and oppies
which sophs tend to understand and retailers maybe not
what we need is firm measures by this company to increase its market capitalisation dramatically otherwise options are going to expire worthless and 2.5M raised is going to disappear into more 'trials' and 'studies'
A higher MC would enable them to investigate debt/equity funding growth rather than CR
WOA Price at posting:
1.8¢ Sentiment: None Disclosure: Held
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