Ann: GEM Share Placement, page-3

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seamisty

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23/05/17

20:55

Post #: 24868971
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Originally posted by rester ↑

Interesting that the agreement between GEM and CIPI was called a binding Term Sheet - yet when CIPI decide not to take up the full 2nd tranche there seem to be limited consequences (for CIPI), apart from the selling down of Tranche 1 if they default on the amended subscription total.

According to the "binding" agreement CIPI was to subscribe for an additional 38M shares @ $3.88. After some negotiations they agree that CIPI only need to subscribe for 8.2M shares @ $3.88. CIPI have through this action avoided an immediate capital loss of around $12.9M or so - based on the share price prior to the suspension ($3.88 minus $3.45 times the ~30M shares they will now not take up). Wonder if CIPI will be able to buy shares on the open market (at lower prices) with the $117M which they will now not need to hand over to GEM (@$3.88)?

Existing shareholders will now wear the impact of the replacement-placement which will be carried out at $3.10 to $3.20.

Have I misunderstood the term "binding"? I would love to do business with companies like GEM where you can simply walk away from your commitments (with minimal consequences) when things do not play out in your favour.

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Gem and dodgy dealings? http://www.theherald.com.au/story/3336905/jenny-hutson-is-a-little-too-gr8-for-the-good-of-g8/ http://www.travelmole.com/news_feature.php?news_id=109808&c=setreg&region=4 https://books.google.com.au/books?i...gQ6AEIWzAJ#v=onepage&q=chris scott s8&f=false

GEM Price at posting: $3.45 Sentiment: None Disclosure: Not Held
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(20min delay)
Last 87.5¢		Change -0.010(1.13%)		Mkt cap ! $675.1M

Open	High	Low	Value	Volume
88.5¢	89.0¢	87.0¢	$2.058M	2.343M

Buyers (Bids)

No.	Vol.	Price($)
17	99387	87.0¢

Sellers (Offers)

Price($)	Vol.	No.
88.0¢	10601	1

View Market Depth

No.	Vol.	Price($)
17	99387	0.870
7	258162	0.865
16	60518	0.860
13	112260	0.855
31	257286	0.850

Price($)	Vol.	No.
0.880	10601	1
0.890	5819	1
0.895	46235	4
0.900	89714	6
0.905	44248	2

Last trade - 16.10pm 21/07/2025 (20 minute delay)

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Ann: GEM Share Placement, page-3

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