Ann: $35M Capital Raise, page-20

Guys. and Gals, im just thinking out loud on 2 things:

1. Change in mkt cap pre deal to post deal.
2. The implied value of the option that was granted on the cap raise to investors (1,458,334 @ $29), and 500,000 $29 to Evolution.


1.) So pre Cap raise mkt cap was 17.8mm shares * $26 =$462mm AUD
post raise its 19.25mm*$23=$443mm AUD (and they have net added about $32.9mm cash to balance sheet (after fees of $2.1mm).

i have included all the option and strikes that they posted in their last notice on Feb 6...
so mkt cap has actually gone down.

at $30 market cap is $636mm

I valued the options just using an online calculator: https://www.optionseducation.org/toolsoptionquotes/optionscalculator

and i calculated 66% anualised vol using the last 2 years of price data. That gave me a call price of $7.78. using a $24 stock price.

So to me the investors are getting a $7.78 discount to their cap raise price of $24, and existing shareholders obviously lose upside.
A no brainer for the investor, not so good for existing shareholders.
This is not cheap funding in my eyes at all..the implied cost of the options is $15mm on a $33mm cap raise..
I know that there is a bid offer in options etc.. I am not sure if these options will be listed or not, so we may never actually see a market price.


I'm not an options trader, so I may have screwed up the formula or pricing.. would love to hear feedback if you have it.
I am assuming this was the best deal available, but the money didn't come cheap.