Personally, I do not see any problem in the resolutions when looking at context.
From last year's AGM resolutions they could have raised up to 25% additional capital (standard 15 + additional 10). They could have done it at 15c. They didn't, probably relying on their ability to get debt. They haven't got debt yet and used just under 10% of the 25% capacity to raise what was necessary in August 2023. Although raised at 9c, these things happen.
I think it's an advantage to have a large shareholder who does not want to get diluted unless absolutely necessary.
Now the current resolutions call for the August 2023 raise to not be counted towards standard 15% capacity and again seek for an additional 10% capacity.
Given my comment about the shareholder, I think they would try and avoid any raising. However, it is prudent on management's behalf to have such a capacity in place for one single reason. If banks and institutions go hard ball on debt, the company can turn around and raise the required funds from existing shareholders whether in one go or piece meal. 25% at current price is about $10mln.
I think those resolutions if approved derisk the company and dilution is not guaranteed.
CXM Price at posting:
6.4¢ Sentiment: Buy Disclosure: Held
