Capital Raise announcement seems to give retail holders a bit of a raw deal, hey? Let's break it down:
Retail Offer: If a retail investor hypothetically applies for $2 million worth of shares, they'd get 100,000,000 shares and 50,000,000 options. Assuming they exercise the options, the average cost per share would be $2,000,000 divided by 150,000,000 shares, which comes out to 1.33 cents.
Board Offer (Unclear): The announcement suggests the CEO and others investing $2 million receive 100 million shares and 100 million options, resulting in a 1 cent average cost per share if exercised. That's a 25% discount compared to retail investors.
The reason for this difference isn't exactly clear.
It's fair to ask these questions before participating in the capital raise:
1.Why are retail investors offered less favourable terms than the CEO and others involved?
This isn't the CEO's first rodeo - company history shows they've sold shares at much higher prices in the past.
Alternative Options:
Perhaps a better approach might have been: Selling the entire company via a scrip issue to another ASX-listed company like BDT or any other in similar industry (not currently a shareholder, by the way).Replacing the AMS management team to prevent further dilution and stop these seemingly outrageous proposals from the CEO and board in my opinion.
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- Ann: Notice of Extraordinary General Meeting/Proxy Form
Ann: Notice of Extraordinary General Meeting/Proxy Form, page-8
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3.9¢ |
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Mkt cap ! $47.33M |
Open | High | Low | Value | Volume |
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Buyers (Bids)
No. | Vol. | Price($) |
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1 | 18319 | 3.9¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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4.0¢ | 100000 | 1 |
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No. | Vol. | Price($) |
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2 | 86315 | 0.038 |
6 | 497292 | 0.037 |
3 | 1302277 | 0.036 |
6 | 326288 | 0.035 |
2 | 158375 | 0.034 |
Price($) | Vol. | No. |
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0.040 | 100000 | 1 |
0.041 | 23333 | 1 |
0.043 | 47590 | 1 |
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