Interesting that details of the issue were hidden at the end of the operations update.
~28m shares issued @ 11p. With shares currently 13.25p that is ~$630k immediate profit to wholesale investors (close friends of the company?) ergo - 630k of shareholder wealth stripped away.
~2m shares issues free in lieu of corp. advisory work = more dilution to the value of 265k.
The whole s708 rule is a ruse. Why shouldn't retail investors be entitled to invest on the same terms without a prospectus? Given continuous disclosure they should have the same opportunity as the professionals. The rule which is supposed to benefit non-wholesale investors actually disadvantages them.
RRS Price at posting:
19.0¢ Sentiment: None Disclosure: Held
