Ann: Termination of Binding Agreement, page-157

@backwardsturtle,


The 80% applies over the last 5 days on which sales in Shares were recorded before the day on which the issue is made.

The SI's can agree to fund $1M at the higher of 1.5c OR 80% of the 5 day VWAP on 28th Feb (i.e. 5 days from resumption of trading)
This would satisfy the test above, and also satisfy the securing of funding allowing GMC to trade again.

This would also enable SI's to contribute capital at 80% of the new market price (as opposed to one premised on something that never eventuated).

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Separately,

on 8 September 2016, GMC raised $1M at 1.5c but also gave the SI's a 1 for 2 option at $0.005.

At that time that GMC still had an enforceable deal with Pak - who was buying 10% for USD$10M - contributing capital at essentially $0.09

They then go and offer 70m shares @ $0.015
and 1 for 2 options at $0.005 so 35m options at $0.005
The share price was at $0.018 at the time

Assuming conversion of options
Cash received = (70 x 0.015) + (35 x 0.005) = $1.1.75M
shares on offer = 70 + 35 = 105M
effective offer price = $0.0112

Points of note
1. If they believed Pak was actually going to come through with funding $14M AUD at around $0.09 per share, why would they raise $1M at $0.0112

2. Are those SIs that got offered these 70m shares still on the register, or did they cash out at above 4c? If so, what information did they have that made them exit?

3. We know GMC were approved for the following:
400,000,000 Shares in the Company for cash consideration at an issue price not less than 80% of the average market price (as defined in the ASX Listing Rules) for the Company's Shares calculated, for each issue of Shares which is made, over the last 5 days on which sales in Shares were recorded before the day on which the issue is made)
Surely, this means that you cant just go throwing in the money options as part of the capital raise to get around the 80% rule.
If you can, we know how GMC are going to structure this capital raise.

GMC have a lot to answer for.