0.01% shorted. I doubt anyone would bother driving the SP down from here. Who ever was driving down the price before the CR has already achieved their goals.
Sophs can sell now to pay for the CR. No sure whether there are any issues with wash sales given the attaching options. Selling below the offer price gives an indication of the value of those options. Both options have been in the money in the past 3-4mths and I see no reason why they won't be again. Particularly given the piggyback options have a 2027 end date.
It is interesting that the $2.5m placement to sophs was oversubscribed ($4.3m) and the majority of the raise is to existing shareholders (upto $9m). The record date was last Friday, so the majority of the raise is for existing holders. $100k would ensure most holders would not be looking at dilution if they participate and the bigger holders are probably already engaged as sophs.
The timing of the options should align nicely with future funding requirements and will (hopefully) be bargains when the time comes. Option trading should encourage take-up beyond what holders might want given they are not committing to a bigger investment in Feb 2025 (i.e. they can sell them).
I would assume there will be some management communication coming soon that will let us understand how good a deal this is. After all, the options need approval by shareholders in April.
BLG Price at posting:
3.5¢ Sentiment: Buy Disclosure: Held
