"It is a ridiculous and greed lead proposal, that will cause...

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opel24v

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19/05/24

09:17

Post #: 73898047
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Originally posted by jandb85: ↑

I did receive the offer and it was very clear the options were “subject to shareholder approval’. It was stated at least twice in the offer documents. It was also stated in the SPP raise as well that all options were subject to shareholder approval. Those who have contributed to either the sophs raise or the SPP are also ineligible to vote for the resolutions leaving the decision to those who did not participate.

Personally I read the offer and terms and thought wow that’s one seriously bad deal for existing holders and decided not to participate.
If options are approved it is the easiest free carry play given on a platter dump the heads and keep exposure to the options then rinse and repeat with the longer dated ones. It appears from trading lately some had this plan and acted on it already.

The reason the options and raise is subject to shareholder approval is because they massively exceeded listing rules for raising. This has happened on 2 fronts exceeding a discount of 25% of 15 day VWAP and then if that wasn’t bad enough exceeding 25% dilution which is more then allowed without a special resolution.

At the last AGM the company asked for and was given approval to raise up to a further 10% equity for a total of 25% dilution possible in the 12 months post AGM. This raise has exceeded the mandate given and smashed it to pieces with over 30% dilution possible, then raise has also has been done at a massive discount to add salt to the wounds exceeding the 25% discount on 15day VWAP allowed to access the 10% extra equity approved at AGM. If all resolutions are approved the company will also still have the ability to raise a further 25% equity in the coming 12 months adding to further potential massive dilution and making existing longterm holders accounts almost worthless.

In the lead up to this raise the stock was in an uptrend and then has been smacked back down with a very steep discount and crazily generous option terms.

Having aired my own thoughts to many of the top 20 shareholders along with management and received feedback both for and against voting the options in, I personally can’t bring myself to vote for the options package. It is a ridiculous and greed lead proposal, that will cause massive potentially unnecessary dilution and set a mandate of what we will accept as shareholders. Resolution 3 in the voting is also the only resolution without unanimous support of the board so at least one or possibly two directors also see this for what it really is.

To those who contributed to the raise and are still holding the stock, thank you for supporting the company as many of us have for years. The discount given in the offer should be a great offer on its own without any options attached given the stock was in an uptrend and holding happily at 3.5-4cents and should hopefully return there once again.

Good luck to all but it is a massive NO to resolution 3 from me.

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"It is a ridiculous and greed lead proposal, that will cause massive potentially unnecessary dilution and set a mandate of what we will accept as shareholders."

Also a massive NO to resolution 3 from me.

ADO Price at posting: 2.3¢ Sentiment: None Disclosure: Held
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Last 2.2¢		Change 0.000(0.00%)		Mkt cap ! $54.77M

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