The placement of the shortfall is a disgrace. The shares were trading at $0.079 the day before the announcement of the shortfall placement. So they thought they should issue shares at $0.03. Even if they gave a 30% discount to the share price this would have been $0.055 per share.
If they had of got a placement away at $0.06, they would have issued half as many shares (and no free options).
Another alternative would have been to issue some of the rights shortfall shares at $0.03 per share (plus get the free attaching option), but only if they take a corresponding investment in a placement at $0.065. Much less dilution, or raise more money for the same dilution.
What the hell were the Directors thinking??? Sure doesn't feel like this was in the best interest of shareholders...
Regards Marv
SPA Price at posting:
9.3¢ Sentiment: Buy Disclosure: Held
