The challenge is the approach taken by ATV is a “stuff you” to...

The challenge is the approach taken by ATV is a “stuff you” to the loyal retail and HNW clients,by offering something to a limited set of investors. So those investors that went in get diluted and do not get the chance to participate. I know I would have participated and to be honest probably would have asked for excess allocation, because until this event I had faith in the team.

The management team could have raised through a hybrid instrument of a placement and an accelerated entitlement offer, that way it gives those investors that backed your listed a chance to participate. I am even more frustrated that the company provided a market update just before and indicated that there were no cash or related issues, and then a “limited” set of investors get an offer to invest more at favourable terms with attached options. For the majority of the register it just meant a massive reduction in value of our holdings, and for people like myself I no longer trust the management team and the approach to the investor base.

The discussions around the need for the raise or not are a different issues to me, the issue is my frustration when I see micro-caps take an approach which ignores the majority of the register and effectively creates a 2 tier market “those in the tent” and “those out of the tent”. I personally wish ASIC/ASX would provide guidelines as it really is a disadvantage to minority shareholders which I think they should look at in the context of “oppression of minority holders” (section 232 of Corps Act). FYI LET ME BE CLEAR I AM NOT SAYING ATV DID ANYTHING LEGALY WRONG AS WHAT YOU DID WAS NORMAL ASX MARKET PRACTISE - YOU DID TECHNICALLY THE RIGHT THING I just think morally the wrong thing which the ASX/ASIC seem to have no issue with.

My view is at your next board meeting there should be a serious discussion about what the approach to investors is, as a small company you are below the radar of most institutional investors so rely on retail and HNW investors. The minor additional admin of an accelerate entitlement offer with a placement, would have ensured a loyal base of investors instead now people departing (like me) and I am sure a lot of others are as well just not part of HC. If your advisors did not inform you of the impact of your approach to be frank you need to fire them, as ATV will now be in my “sin bin” of stocks and I know many of my other friends as well.

So my earlier comment of I will probably buy back in at 1c was a genuine statement, albeit will seriously consider at 3c, as I think you will struggle to get buying support in the market given the fear of future dilutive placements to a limited set of investors. I do think you are worth a ton more then 1c, love the tech and the vision, but market price in early stage is not based on “reality” but “sentiment” and I think downwards for a while.

Interestingly of my 2021 IPO investments (I normally purchase on market vs on allocation) my best performing stock is up over 50% and like ATV they also raised funds but used an accelerated entitlement offer (which I participated in), and I plan to keep holding it for a long time and also will happily participate in a raise again. In that stocks case I may not have been fully supportive of the need to raise but am fully supportive of the fact they include every shareholder with equal weighting.