Ann: $4.3m Right Issue, page-2

The Cons
- Price of 0.08c means for the short/medium term SP will hover at these levels until raising is complete and news is out.
- Dilution.....
- A further investment has a hard dependency on a successful outcome with NAL and Authier
- Last SPP was under subscribed and possibly may happen again, in light of global economic conditions and investor confidence
- Most ordinary shareholders have bought in at prices well above this price carrying significant losses so questions around how supported this will be.

The Pros
- Directors putting in $820k ($420 committed / $400k from shortfall from Sayona Quebec CEO)
- This plus their previous investment of $900k in Aug 19 would imply a level of confidence of NAL Bid success + Authier permitting approval. Can't deny they're putting their money where their mouth is.
- 1 free option per 2 new shares with exercise price of 2c. Some upside on this investment if post raise SP climbs well above 2c.
- Proposed time-frame of raising is 1 month at this stage, indicating positive news may be expected to flow in late April/May.

Not what we were hoping for really, but to come out on the front foot and confirm an $820k investment from directors suggests the confidence is there. Time will tell. In the meantime, it's a waiting game on Quebec to come to a decision.... and based on the outcome this investment could be a multi-bagger or a dud (if unsuccessful).