Ann: Completion of Retail Entitlement Offer, page-11

One possible reason for shareholders not taking up their full entitlements by selling part of their current holdings could be the unrealised capital gain liability consideration.

By chasing a quick 5 to 10% profit, they might have to foot the tax on their capital gains much earlier. This is especially true for those bought or accumulated millions+ of DEG shares from when the share price was less than 10c.

Now, imaging if you own 2 million shares (with an average cost of $15c), your entitlements would be 251,572, which means you would need to come up $277k in a very short period of time.

You might be lucky to sell some shares at or above $1.21 for a quick 10% profit ($27k). However, you would have a capital gain liability realised (up to 50% of $266k) for FY2023-24 that you would need to pay later.