Yes WW, their explanation is not overly transparent, we have to guess their reasoning by doing the maths They wanted $1M but expected $12m plus. Why no clear explanation for shareholders what were they going to do with $12M. Legal - probably is, but not clever PR.
"Total number of +securities proposed to be issued for an offer of securities under a securities purchase plan
ASX +Security Code +Security Description
Maximum Number of+securities to be issued LCK ORDINARY FULLY PAID 174,080,704"
"The Company is seeking to raise a minimum of $1,000,000 under the SPP. The SPP is underwritten byCanaccord Genuity (Australia) Limited (Underwriter) to the value of $1,000,000 (Underwritten Amount),subject to the terms and conditions of the underwriting agreement. Directors may also, in their absolutediscretion, decide to increase acceptances in the event of oversubscriptions (up to the maximum permittedby the ASX Listing Rules)."
Very strange, subscribers on average received four times what they would have received if oversubscribing was not allowed. This appears to me that subscribers, for reasons known only to themselves, gave it a huge tick of approval as $30,000.00 max per shareholder would exclude any big speculators. Perhaps they threw a lot in expecting it to be scaled back. This gave the company an opportunity to grab the money, comfortably reinstate salaries and the like after the two quarters and avoid another early capital raising; or perhaps finance some other venture. Without a full explanation from the board we are left to speculate. Its pretty clear that $1M was not their goal, they asked for the impossible hoping for a miracle. That's not good, it challenges our confidence in them. J L
LCK Price at posting:
9.6¢ Sentiment: None Disclosure: Held
(20min delay)