Fourdollars, if this is all true as you say, Jenkins is...

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jimbosaul

164 Posts.

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08/03/22

13:08

Post #: 60057770
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Originally posted by fourdollars: ↑

Massive conflict of interest for all directors but especially for Jenkins.

If they are successful in conducting the imminent capital raise, it will only be because the directors subscribe for a large portion of the shares to be issued. So the closer the company is driven to running out of cash, the lower the cap-raise price and the greater proportion of the company that will be transferred to participating directors.

For Jenkins, his $400,000 loan + interest converts at the 5-day VWAP prior to the AGM, so again, the lower the share price, the more shares he gets.

The need for a cap-raise was obvious to everyone after the last Appendix 4C. This means it would have been obvious to the Directors in the months prior. The SP was above 1.6c for the entire period 8-Nov-21 to 25-Jan-22, but instead of initiating the cap-raise in this period, they have left it so that it will be conducted at sub 1c, (may even get down to sub 0.5c when the SPP discount is applied).

Only people to benefit are the participating Directors, and in particular, Jenkins.

Shouldn't be that surprising, after all, he got paid as an underwriter for underwriting SPP shares that he had resolved to purchase in the last cap-raise.

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Fourdollars,
if this is all true as you say, Jenkins is underwriting and buying shares, he gets them at a favorable but maneuvered price, but he still must believe in the company as he is clearly happy to invest in it. he must believe in its long term sustainability. (me, im not sore sure!).

but clearly he wouldn't be putting his hard earned income in and all the effort to be on the board and continue to invest if he didn't think this thing could go.

thoughts?

RAN Price at posting: 1.1¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

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