its also probably the easiest and best way to fund the small shortfall in the Alcoa deal.
From memory its priced at 10% below the prevailing price. Most cap raises are around that or worse and there's a lot more in fees to the underwriters or lead broker. our fees have been paid and are a sunk cost, so going forward, the facility is quite competitive.
Yes, we issued too many options and threw a lot of equity out the window, but we were a 10M MC company back then. Looking at things today, the facility has brought in a bit of option money and provides a fast and cheap funding option for us in the future.
if we do use GEM facility to fund the shortfall, think about this: not only do the instos have to buy on market, but they can't even get at any future options / discounted shares issued as part of a future cap raise. if the business develops as planned, there will be PLENTY of demand for shares and our gains will be realized. its a nice setup in my opinion.
and our SOI is still very small.
FYI Price at posting:
36.5¢ Sentiment: Buy Disclosure: Held
