Ann: Fully Underwritten $5m Placement and Entitlement Offer, page-22

I'm doing my best to decipher your logic.

"For management to accept this raise at 10c when they had the option of the $5M debt facility still makes me confident they have some big upcoming newsflow to ensure a decent SP recovery"

If upcoming news flow (assume binding off takes and finance) is near, the exact thing to do is lean on the AC facility, so you don't need to raise now but at a much higher price. Why, the confidence of a binding commitment will ensure the larger CR is filled regardless of entity. The CR will dilute shareholders much less (looking after the long term believers instead of 17 million new shares!!).

Its highly unlikely finance news flow will be forthcoming, because they need to finish the studies. The fact that 2 underwriters are involved for such a small amount of cash is a bit of a flag for me. Obviously they see atypical risk. The fact they haven't taken the full amount of $5M is also a red flag. If they thought it was a home run, Morgan's would have taken the lot and made an easy 30-50% on the rise from positive news flow. But they haven't, despite underwriting the lot if retail punters see through it.

It will definitely be interesting to see what % the board decides to take. If its not the full entitlement, then we will have our answer on the likelihood of positive news flow.