I also heard $6m at 7 cents with a meeting with the brokers this...

I also heard $6m at 7 cents with a meeting with the brokers this morning. My source didn’t mention the attaching option, that was probably just an oversight as my friend doesn’t hold, his broker just mentioned to him it was available. To have an option exercisable at the discounted 7c would be unusual, the norm would be to have the exercise price set higher eg 12c. Also you wouldn’t expect 1:1 maybe 1:3 or something similar. Hopefully something better will come out of this meeting. The original oversubscribed raise was $10m at 7 cents no option.

If they need to sweeten the deal with the attaching option it sounds like some of those original participants have pulled out. Whether it was reduced to $6m because thats all they need (other financing possibly from this new investor) or because that was all they could raise at 7c without going lower is a question we’ll eventually find out.

In any case it sounds like negotiations with this new investor are either incomplete or didn’t come to a satisfactory conclusion. If there was something there positive for the company they wouldn’t be raising at 7c + the option.

It certainly isn’t a good look being suspended for 7 weeks just to raise at a heavily discounted price of 7 cents + a free option effectively doubling the dilution of the raise.

We were trading at 9.7 - 10c before someone got wind of the impending cap raise & sold it down to 9.2c . 10c down to 7c is a 30% discount a very big discount even without the option. As someone else posted I’d expect a lot of background explanation as to why we were suspended for 7 weeks!