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Names little

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24/11/23

14:37

Post #: 71091858
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Originally posted by CEOChair: ↑

If they stick to raising the target $2m from the SPP, then 17,391,304 new shares will be issued in addition to the 43,308,700 placement shares already issued which represents just under 10.5% of the 578,651,781 SOI prior to the placement. So if the only reason someone wants to apply for SPP shares is to cancel out the dilution and they believe the board will stick to the $2m target and/or it won’t be oversubscribed, they only need to apply for 10.5% of their current holding… so they wouldn’t really need to apply for $30k unless they had around $300k already.
However, the imminent news that simply has to be announced before the Wednesday Webinar, or what is the point of it? If the news is underwhelming enough, say Rafa is un- or barely economic the SP might go sub-11.5c and nobody much will take up the SPP. Even if it is just OK, like yeah Rafa is half decent enough to develop Phase 1 profitably but there ain’t much else to jump up and down about, then I can’t see it being oversubscribed, there’ll be takers, but I still can’t see much improvement on 11.5c. But if the fast initial data supports a path to Phase 2 development following the appraisal/retest program then everything turns on a dime and the dilemma of oversubscription, scaleback and dilution becomes inevitable. Do we actually want to issue 191,805,536 SPP shares for $22m? I can’t see why unless it means we can attract a strategic partner with a smaller stake than 50%… but then we probably won’t be free-carried through to production… so it’s swings & roundabouts and I guess they had to leave all options open given the timing. I just think they jumped the gun and could have held off until the 3D Seismic interpretation was completed and all this was known.

Names, can you please clarify, just for general understanding in future… so, can any company raise the full 15% without shareholder approval + 10% with shareholder approval the normal way and then raise another 30% on top of that by way of an SPP, equating to a 62.5% total dilution (and do that once every 12m?) Surely not?

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Hi CEO, and then throw in as much pro rata entitlement offer as they want and raise whatever they can.lol.

Of course SPP are usually smaller offerings and often done in conjunction with a placement to the big end of town and sophisticated investors, likely to appease retail holders.

7.1 and 7.1A seem designed to restrict excessive placements to the big end of town at the expense (dilution and discount)of existing holders, so raisings that are from the existing holder base such as SPP and pro rata rights issues don't have the same restrictions. All holders have the same right to participate, unlike placements.

Thats my take on it anyway.

BRU Price at posting: 12.5¢ Sentiment: Hold Disclosure: Held
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