Yep, as mentioned above, what we have here is an underwriting agreement against the DRP.
In laymans terms, the DRP lets them issue shares to stockholders instead of paying a dividend - which means they get to keep the cash.
At present, very few people have opted into this. This means they're having to pay out a lot of cash.
The announcement suggests that a number of contracts have come on ahead of time and this has caught them short on cash to deliver.
As a result, they're going to pay an underwriting fee to a bank to ensure they take the DRP stock - likely in the region of a few hundred thousand dollars. This will effectively result in them raising ~$8m in additional capital to execute on this pipeline of opportunities.
Just quietly, I suspect following the hydrogen and critical minerals processing tax credits announcements in the budget (~$22bn worth of tax incentives), they've had a number of projects green lit in the last 24hrs.
All in all, its a growth signal. They wouldn't be paying an underwriting fee for the capital if they didn't need the capital. It tells me their pipeline and sales are coming forwards and the second half will likely be marginally stronger than expected / guided as a result.
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Yep, as mentioned above, what we have here is an underwriting...
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Price($) | Vol. | No. |
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