EMC2... our treatment in previous capital raisings was even worse than you have outlined. In the February 2011 entitlement issue (at 1.2c), we were invited to apply for additional shares over and above our entitlement (shortfall shares). The share price traded above the 1.2c price consistently through the raising period but there was still a sizeable shortfall. The board allocated shareholders who applied for additional shares a princely 20.69% of what they asked for, and gave the rest to Novus. In fact Novus received 83% of the shortfall, whcich was instantly "in the money". Fast forward to the March 2012 issue which you talk about in your post... same thing happened, with a big shortfall that was "in the money" and allocated predominantly to Novus at the expense of existing shareholders who applied for additional shares.
Having said that, we are where we are and another entitlement issue has been well flagged by SG. This time, how about adding some free attaching options, which might mean the issue can get away at 0.5c or 0.6c? Those free options could be exercisable at say 2.5c, which is above where most existing shareholders bought and means the options don't further dilute us until we are in profit. If we can get through the current squeeze and extend the best of our leases next March (if not all of them)and get the BOPD flow from SRH5 that we are expecting, then that 2.5c price may start looking quite achievable. Holding those options will give us some nice extra upside.
Regarding the upcoming vote - I really like the background of Chris Porter but also want to see the Investor Group get a voice on the Board. Thus I have decided to vote as follows - Meeting 1 (EGM) Yes to one of the T's and no to the other (yet to decide which) Meeting 2 (GM) Yes to Chris Porter, no to Rob Oliver.
Call me a fence sitter!
GGP Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
