My reading of the announcement and of this is telling me that my interpretation (and yours) is correct, ie. MTC management are determining the basis for calculating a new issue (or placement) and need to make sure they do not exceed the 15% threshold.
By including the excess 2,326,890 shares in "C" when performing the Listing Rule 7.1 calculation, MTC's placement capacity will be reduced.
For example:
(A x B - C)
100m shares (A) x 15% (B) less 3m shares not issued but to be issued (C) = placement capacity of 12m shares
Which would be a lot better than:
100m shares (A) x 15% (B) = placement capacity of 15m shares; or
103m shares (A) x 15% (B) = placement capacity of 15.45m shares
(nb. the above numbers are not MTC numbers, just random numbers for the example)
Is it good for us to have a lower placement capacity?
Well it does lower the amount of capital we can raise under Listing Rule 7.1, but then again Listing Rule 7.1 is there to protect shareholder interests, so perhaps this is a good thing, especially for smaller shareholders.
But what is the 'take-home' here? - That management are having to do these calculations atm suggests a placement is imminent. And strategic investor site visits were set to occur in "late February" remember. And seriously who wouldn't want to climb on board before the iCobalt priority offer record date which is expected to be in early March? And when drilling at Adina is underway as we speak?
All of the above is how I read things ie. just my opinion, I may not be correct and welcome feedback / discussion. I've been doing shares 2-3 years (not long) so just thrashing this out for myself more than anything, it's a great way to learn. DYOR etc
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)