AGM:Proposed issue 50Mill shares for development of project, page-2

In short, I'm very surprised by this plan. The company is effectively putting a lid on the share price for the next 3 months by saying they are about to raise equity. It's remarkable given they could achieve their desired flexibility without seeking this vote. The better approach would be to avail themselves of the higher 15+10% placement capacity under LR 7.1A as well as ratify previous share placements over the last 12 months. (they have 250m SOI, so the resultant capacity is greater than 50m shares)

I like the management team and think they are highly capable and trustworthy, but this is a mistake. I suspect a function of poor advice. i.e. a broker wanting to use the AGM announcement as an excuse to market a possible capital raising without breaching continuous disclosure rules. Hardly necessary given they are a developer that is obviously cum raising at some point (although I'd love it they just borrowed the whole lot and left the brokers in the dust).

In the end the quality of the projects and management will prevail. It's just a pity that this move will hold them back.