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Ann: Notice of General Meeting, page-102

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cmk1969

3,636 Posts.

1021

19/01/20

14:38

Post #: 42458429
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Originally posted by captainblood: ↑

I think some posters haven't fully understood how this payment is structured.

so we have a $35m cr, $20m loan and $35m share placement over a 36month period.

the $20m loan doesn't dilute our current %holdings, the repayments just take away from possible future profits. ( or if things aren't successful maybe a possible future cr to repay?)

so that leaves us at the moment with a $35m cr and $35m share placement causing the dilution to our existing shares.

initially, we were proposing a $50m cr, but with the loan, the dilution has been significantly reduced. (from memory we should thank kiwidub for helping with this). also just joining the dots, if management were expecting a $50m cr to be successful what are the chances of us getting the new $35m raise thru?

now this is the bit, I think people haven't understood. the $35m share placement happens over a 12- 36 month time period. posters have complained that if we were still trading, with the Ann's we have had, the sp would be higher and we would have less dilution. for 50% of this deal this will happen.

the maximum Danny gets in the share placements is 145m shares, 45.62% of the company. this is calculated with the share price being 1.2c after 12months, 1.2c after 24 months and 1.2c after 36months. every cent rise of the sp from when the deal is signed, Danny receives less shares and we have less dilution, in the case of the sp rising as some hope, a lot less.

at the moment some complain that if we were still trading the sp would be 3c.

I will take that as the sp for my eg. if the sp was 3c for the whole 3 years Danny would only receive 58m shares (not 145m) and he would hold 2.5x less of the company, we would be significantly less diluted!!! what would happen if the sp was 5c, 7c, etc???

so for 50% of the dilution of this deal, all existing shareholders will benefit from any increase of the sp over the next 36 month period. when the sp increases Danny gets less shares, shareholder get less dilution. for 1/2 of the payment, its actually the way that people wanted the deal to be structured. hey just my outlook and something to ponder.

ps. all share prices used are pre consolidation

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Thanks CB.

SDJ, I had a bit more of a think overnight regarding your question 'How do you view the proposed investments the Directors have indicated they’ll be making?'.

Here's where my head is at:

OBJ have had their hand out for almost 20 years from OBJ Shareholders and not once returned a single cent in 20 years.
Previous and current BoD's have been remunerated handsomely by OBJ Shareholders by way of Free Performance bonuses, decent salaries and benefits.
Performance Bonuses/Shares allocated on very loosely worded criteria's and then quickly sold on market to realise collectively millions & millions of dollars, over many years and many milestones, that never equated to any return for OBJ Shareholders ever.

So given the amount of information at hand, my view would be that most of the BoD are not actually investing their own money, but rather money you, I and All OBJ Shareholders have afforded them over the years or money that they have realised on Market by selling shares by being privy to information that SH were conveniently excluded from...like for example, the soft launch in relation to P&G.

This becomes very multi-layered for me and I struggle to view this as any type of Investment on behalf of Directors, considering where the money came from in the first place.
Last edited by cmk1969: 19/01/20

OBJ Price at posting: 1.5¢ Sentiment: Hold Disclosure: Held
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