This has to do with the Corporations Act. This restricts an issue of new capital to new shareholders to 15% of existing capital value. It allows an extra 10% if approved by shareholders at a general meeting. It is standard practice for any company which is financed by capital issues to "restore capital capacity" at the first opportunity after the capacity is used up. This would be part of the template used by any such company (read any small biotech or mining explorer) for the AGM. Absolutely no thought given.
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