Ann: PointsBet Announces Capital Raising, page-5

Entitlement price $6.50 Vs Placement price of $13

The true cost base of PBH shares can only be determined by accounting for both the Entitlement and Placement offers. Therefore, PBH’s placement price is likely to be around $13 per share as this provides an average discount of 11% on the closing price.

$13 per share is not unrealistic as PBH are only raising $150m in the placement. This represents approximately 9% of their issued capital. Institutional holders will need to pay a premium price over the entitlement offer to acquire additional equity.

As shown in the calculation below, combining the Entitlement and Placement offers results in an average buy price of $12.17 per share. Based on the following assumptions.

- Average buy price for entitlement offer $13.13;
- Entitlement offer full subscribed for at $6.50;
- Market value of options issued $3 per option;
- Price paid for each Placement share $13; and
- Additional placement share acquired being 15% of the number already held.




Anybody that acquired with an average cost base of $5.00 per share will maintain a cost base of $5 per share. This is below the Entitlement issue price of $6.50. Assumptions:

- Average buy price for entitlement offer $5.00;
- Entitlement offer full subscribed for at $6.50;
- Market value of options issued $3 per option; and
- Do NOT participate in placement.




Anybody that acquired with an average cost base of $2.00 per share will see their cost base increase slightly to $2.40 per share. This is below the Entitlement issue price of $6.50. Assumptions as above, except for the initial cost base reducing from $5 to $2.



All calculations above assume the options are sold for $3 per share. The results are different if the options are exercised at $13.