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18:44
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Originally posted by CybertronDon:
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Thanks for the info! Sorry, I should have highlighted what I was referring to in the shareholder letter for better reference. IMO they are asking for shareholders to vote/approve the right to issue more shares passed the 15% limit to 25% without needing future shareholder approval to do so. Which could lead to future dilution if they allocate a full 25% worth of shares. Any thoughts on this?Listing Rule 7.1 limits the amount of Equity Securities that a listed company can issue without the approval of its shareholders over any 12 month period to 15% of the fully paid ordinary securities it had on issue at the start of that period.However, under Listing Rule 7.1A, an eligible entity may seek shareholder approval by way of a special resolution passed at its annual general meeting to increase this 15% limit by an extra 10% to 25% (7.1A Mandate).An ‘eligible entity’ means an entity which is not included in the S&P/ASX 300 Index and has a market capitalisation of $300,000,000 or less. The Company is an eligible entity for these purposes.Resolution 4 seeks Shareholder approval by way of special resolution for the Company to have the additional 10% placement capacity provided for in Listing Rule 7.1A to issue Equity Securities without Shareholder approval. If Resolution 4 is passed, the Company will be able to issue Equity Securities up to the combined 25% limit in Listing Rules 7.1 and 7.1A without any further Shareholder approval .If Resolution 4 is not passed, the Company will not be able to access the additional 10% capacity to issue Equity Securities without Shareholder approval under Listing Rule 7.1A, and will remain subject to the 15% limit on issuing Equity Securities without Shareholder approval set out in Listing Rule 7.1.
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It's a pretty standard approach. Doesn't mean they will no a raise but gives them the flexibility should they want or need to. I personally don't have an issue with it
