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1.4¢ wide open agriculture ltd

Ann: Prospectus, page-4

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damo77

559 Posts.

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12/05/24

05:29

Post #: 73781919
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Originally posted by 708trader: ↑

It certainly stinks..

if they raise the $10m then they will have 679m shares issued and at an offer price of $0.02 per share that’s a market cap of $13.6m

How can that be if the proforma balance sheet in the prospectus says the net assets post the raise is $22m

why would you raise money at nearly half the post money net assets of the company? No wonder the share price is at $0.03. That would give a net asset value fully diluted before optons of just over $20m and more in line with the proforma balance sheet

the raise price appears to be too cheap and in terms of “conflicts of interest” the existing directors and management shouldn’t be allowed to participate. They are buying over $200k worth of shares. Who will miss out so they get these shares?

Also, the stated use of funds has over 80% allocated very broadly as sales and R&D. So they can do pretty much whatever they want with the money without being held accountable

Maybe ASIC need to have a closer look at this deal. I would be interested to see how they seperated the related parties when they negotiated the sale of DCF business.

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They didn't even get the balance sheet right 'post cap raise' as they simply added $10m in new income but didnt take away the $500k in fees off the value

WOA Price at posting: 3.0¢ Sentiment: Sell Disclosure: Not Held
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