I have calculated that this CR will add up to approx. 33% more shares to the register (plus as many options), so shareholders who do not participate stand to be diluted by up to 25% immediately, and even more if the SP recovers and options are exercised.
The immediate 25% dilution was quickly factored in to the SP after the announcement.
In the prospectus there is a table showing that the directors have all committed to applying for and estimated 846,154 new shares (plus options) under the SPP. I figure that this, at the time of release, probably equated to $10k each.
So far it looks like they have reached over $5M out of a target of $6M. There is provision for a further placement after the SPP closes:
It seems to me that quite a few people who are likely to know more than we do about BLG's prospects, are sufficiently bullish on the stock to put their money where their mouth is.
On this basis I have today added to my initial application. They could all be wrong of course, but this company has come so far over the last few years that it seems nuts to lose faith now.
All IMO.
BLG Price at posting:
1.0¢ Sentiment: Buy Disclosure: Held
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