LPD

20.0%

0.2¢ lepidico ltd

Thanks to you, @rayien and @Sharpy, I too found the details of...

First 160 Last

Share
Profile

Follow
Naughtpatjoe

763 Posts.

439

02/01/20

10:54

Post #: 42191367
Share

Originally posted by rayien: ↑

@Sharpey and for those interested, the fee they earn on small companies is somewhere between 3-5% of money raised (and lpd, having control of all elements, can control the amount raised if they wish). I didn't see a specific number disclosed from the announcement. So if they sell 24m shares at a floor price of 1.5c over a period set by lpd, they would raise $600k dollars and take a fee of 18-30 grand. This is how they make money.

To maximise you might think they would dump to market to raise the full amount, but they must sell at the floor price lpd dictates or 10% discount on vwap (period lpd dictates), whichever is greater, and only during a period lpd dictates, and only up to an amount of shares or dollars lpd dictates. So they can't just flood the market because they can only sell under certain parameters. They want to trickle it out because they can't sell and get $0 if market goes below that floor price of 1.5c (for example). So they don't want to shock market. They want to sell at a higher price ultimately (and still sell the most they can) and so do LPD. Which is why LPD will only use this method of raising capital strategically during times they expect a raise, and sell into it. Will limit upwards trajectory sure, but it won't do the death spiral you get with con notes and other methods.

Full disclosure. I don't really like any dilution or capital raising so I don't love this deal and of course we are paying fees etc. which is never great, but in this volatile market this level of control and limitation is much better than many other methods of raising. As i said before, a necessary evil. As always DYOR.

(sorry jasox wasn't trying to repeat to you, I know you discussed this before. Was trying to add to your point for people asking questions, not be contrary to you. Apologies if it came across otherwise. I know you're up to speed on this one)

source for 3-5% figure:
(couldn't find more recent one, or one specific to low, but happy if someone find out an actual number)

Expand

Thanks to you, @rayien and @Sharpy, I too found the details of this arrangement somewhat confusing; and coming so close to this holiday season hasn't left much time to go though the mechanics of the agreement. I wish that LPD had been a little more transparent - at least an example of its workings.

However, you guys have done a great job in teasing out the finer details.

(So to has Jasox)

Cheers all.

PS Happy and prosperous NY to ALL
NPJ

LPD Price at posting: 1.6¢ Sentiment: Buy Disclosure: Held
11 Upvote

0 Great analysis

Reply

Top Stories

MIN

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

Aussie inflation seemingly hit a 3 year low. So why's the ASX200 red?

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

What each US election outcome would mean for Australian companies & investors

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

Making money: How many microcaps should be in an investor's portfolio?

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

There are more pages in this discussion • 22 more messages in this thread...

First 160 Last

Add LPD (ASX) to my watchlist

(20min delay)
Last 0.2¢		Change -0.001(20.0%)		Mkt cap ! $17.17M

Open	High	Low	Value	Volume
0.2¢	0.2¢	0.2¢	$19	9.56K

Buyers (Bids)

No.	Vol.	Price($)
89	89268820	0.2¢

Sellers (Offers)

Price($)	Vol.	No.
0.3¢	67191239	55

View Market Depth

No.	Vol.	Price($)
89	89268820	0.002
89	212470865	0.001
0	0	0.000
0	0	0.000
0	0	0.000

Price($)	Vol.	No.
0.003	48691239	54
0.004	25654852	34
0.005	12706941	13
0.006	3591995	8
0.007	1047189	5

Last trade - 10.04am 01/11/2024 (20 minute delay)

LPD (ASX) Chart

Thanks to you, @rayien and @Sharpy, I too found the details of...

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

Aussie inflation seemingly hit a 3 year low. So why's the ASX200 red?

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

What each US election outcome would mean for Australian companies & investors

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

Making money: How many microcaps should be in an investor's portfolio?

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Thanks to you, @rayien and @Sharpy, I too found the details of...

Top Stories

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

Aussie inflation seemingly hit a 3 year low. So why's the ASX200 red?

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

What each US election outcome would mean for Australian companies & investors

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

Making money: How many microcaps should be in an investor's portfolio?

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News