This meeting is for shareholders to ratify the placement of the shares, as per 14 August announcement where 10m shares were allotted and sold by Hartleys. As per ASX Listing Rule 7.1, a company cannot issue 15% or more additional shares within a 12 month period, and ASX Listing Rule 7.4 says it cannot do this without shareholder ratification. Further, this meeting is seeking shareholder approval to issue up to 15% in the following 12 months, without shareholder approval. So basically, they are looking to get shareholder approval for the listing of these shares, and potentially to list more shares in the next 12months without having to get shareholder approval. Depending how responsible management are, this can open the floodgates and open SIR to further dilution in the short term. It is basically the company ensuring that they can raise further funds quickly as expansion, production development, exploration costs, etc warrant further capital injections.
Sorry if this is still clear as mud.
SH
SIR Price at posting:
$1.10 Sentiment: Buy Disclosure: Held
