Agree;
The 8M of interest was 2 fold.
1) The shareprice was close to 30c when announced and since then... What would the interest have been if they said we're raising 6.5M at 25c SPP only. Would retail have been so keen to participate when the shareprice dropped immediately to 25c (as is typically does). 3-4 weeks of everyone wondering what to do... any pro support of buying on market probably not because they've got no capital on the line.
2) The SPP was going to be oversubscribed. So what does everyone do to ensure they get a decent amount. They offer more knowing they'll be scaled back. Plenty of people stating i only wanted 10-15 so i asked for 20-30 etc/
The truth of the matter is the initial CR had a small scale back from the pro's when they asked for 4.5M at a better discount so not like there was seemingly screaming demand. I can guarantee you if they had of went to raise 4.5m via an SPP they would have barely got the fill. Then what back to the pro's at a discount to the new S/P of 25c
If that had of occurred, Lots of people would have flipped their original holdings on market to try and take a quick profit. The S/P goes immediately the 25c and now you're asking the real interest to take shares at 25c. I can tell you now - when you can buy on market at the same rate as the placement there is 0 interest.
That's why companies raising money do it through the brokers because it's a solid bet they fill the book and it's done during the halt so people can't flip the shares out once they've asked for them.
The SPP takes weeks and people can change their mind depending on the price. Which, had the S/P dropped below 25c the SPP would have flopped... imagine banking on only that to raise money and coming up short.
Honestly, don't think the raise can be faulted at all. Pro's got discount, retail and shareholders got opportunity at same rate. No options for flippers and was on-market opportunities at 24.5-27c.
Just my view as an existing holder, who took the opportunity on each available avenue to get shares.
SF2TH
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