$3m capital raising

I just got the call direct from the company, David Symons who's a non exec director and banker wanker with Macquarie/Merrill etc...regardless seemed like a good bloke and straight up...he's more or less doing the placement direct on behalf of GBI...saves the broker fees I spose...I'm having a follow up call with CEO later today.

They're raising $3m which is the full 15% placement capacity. Issue price will be 40c which on my calc is a 11.1% discount, not that much in the current market but it is what it is.

He said that they were originally only looking for $2.5m but have upsized it due to strong indications of support from some existing holders.

He said that this is their last dip for capital before the business washes it's face which is consistent with their announcement from a few weeks back.

They have the raising cornerstoned by 'a well respected institution who undertook a rigorous due diligence process over the past 2-3 weeks'...they will a substantial holder (ie. >5%) post deal.

Pending a chat with the CEO, I asked for $50k and he told me that I would probably be scaled back on that amount in the final allocation which I guess is a good sign.

Will give an update after I speak with CEO later today

cheers