The results for this Rights Issue was as I expected, (post...

The results for this Rights Issue was as I expected, (post 44290404) the sad history of GPP/GNM continues with another credit raise not being supported by the shareholders.

There was up to 108,417,449 (being the maximum amount of Rights Issue shares, based on the total registry) with only 29,885,909 taken up, equating to a miserable 27.57% participation.
As indicated in the prospectus, Cameron, King and Peters were subscribing for their full allotment, the combined total amount of shares that they were eligible for was 6,620,045, this equates to 22.15% of the shares issued.
Indeed a disappointing result in my opinion, the amount of "expected" money to be raised was $650,505.00 of which only $179,315.00 has (currently) been achieved. I do expect that there will be more, with the "Shortfall Shares" yet to be placed, although there will be some more fees to be paid, there are 78,531,540 shares available @$0.006 = $471,190.00, if they place all these shares there is an added fee of $28,270 to be paid to Xcel Capital.

Here is a fun fact:
The company has just raised $179,315.00 from this Rights Issue (shortfall shares still to be placed) if all the shortfall shares are in fact placed, the total payable to Xcel Capital is $179,270.00

For what it is worth, I will be voting against:
(1) Options issued Cameron & Peters, they have been involved in the depreciation of share holder value over a period of time. The proposed options will be listed, which means they can sell at anytime and not reliant of reaching milestones before being executed.
Free listed options, option share price goes to $0.005 = $30,000 (Cameron) $15,000 (Peters) versus Free unlisted options (cannot sell them for a quick flip), meaning for these to be any value the share price needs to over $0.01(exercise price) and to make the same margin the share price has to be $0.015, which is a multiple of three to todays share price, that is what I would consider "aligning directors" with shareholders.

(2) Options issued to Robinson & Coxhell, maybe before handing out any "incentives" try earning your salary and increasing shareholder value first, and again, as above listed versus unlisted options.

(3) Options issued to Xcel Capital (Gameplay Capital, has to be the most apt name for anything aligned with GPP/GNM) considering that they will be paid circa $180,000.00 for being the lead manager/advisor, IMO is not a bad pay check. Again, as above, listed versus unlisted options.
Quick flip 30 million listed options at:
$0.001c = $30,000, $0.002c = $60,000 $0.003c = $90,000, etc - not a bad bonus if you can get it.

Obviously, the board is recommending voting in favour of the issuance of these options, and me voting against will not mean anything in the scheme of things for a number reasons:
(1) My voting power will make no difference to the outcome
(2) If every mum and dad shareholder voted against the resolutions, IMO i still don't think it would make a difference
(3) If the resolutions to issue the director options are not passed, the company already has a back up and has indicated they may consider other forms of remuneration. Although, increasing salary is conflicting to the company recently announcing a 25% reduction in some salaries.

FYI, the principles of Xcel Capital and Gameplay Capital are the same, Bulseco (ex director of GPP, and new to the Top 20) and Tomsic (Tell Corporation & Papillon)

As much as the reason for the Placement and Rights Issue looks promising not, the company needed to have something to hang their hats on to be able to be an ongoing concern, at the end of last quarter they had $245,000 cash/cash equivalents (with $32,000 being restricted - held as securities over licences) with an estimated cash outflow of $200,000 for this current quarter, leaving a balance of $45,000 - yep the needed the credit raise.
Makes more sense why they have to go cap in hand to have a credit raise after such a short time period since the last (Oct/Nov) as funds are rapidly dwindling again.
Just to jog the memory, the last Rights Issue was also not well supported by mum and dad shareholders, with only circa 40% share on offer being subscribed for. Xcel Capital were also the lead manager, with fees the same as this one $65,000 plus 6% of the total amount raised ($68,000)
equates to $133,000 and 30,000,000 options.
In the space of approximately 12 months Xcel Capital acting as lead manager to capital raising has been paid approx $310,000.00 and 60 million options - yep, not a bad gig if you can get one. This doesn't include (from annual report) circa $120,000 for corporate advisory services paid to Xcel Capital.

cheers