You have to factor in the past raise wasn't well received and the cash they're asking for,($9.9m) before costs. Doing a 16% discount wouldn't get them the cash they're asking for when ppl will just sit back and wait for the discount to be factored in, on market. If it didn't have the free listed option it would struggle to be well received imo. And I don't know what the share price will do. It could go to 1c, it may not. BUT PPL HAVE TO REALISE THE MARKET VALUE. With the proposed dilution, it needed to be 1c with a free listed option. As I said, they couldn't ask a holder to pay even 2c and do a 1:1 which basically says to the market PAY 2c AND BE DILUTED WHEN ITS TRADING AT $31M MC AND AFTER WE DILUTE YOU THE MARKET CAP WILL BE NEARLY $10M MORE.
You can't ask the market to pay for a higher market cap.
The market cap will be roughly the same after the raise, give or take.
Holders are being offered more exposure at $20m market cap (about 40-50% cheaper to current price) when the dilution is factored in.
As long as the price is above 1c you're getting a great discount imo.
1,988,240,000 shares after raise at 1c = $19.88m
It's not a red flag in any sense.
It what they had to do to make sense.
OSL Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held
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