Ann: TOV: Poseidon Nickel Limited - Panel Receives Application, page-42

I am shocked that you are shocked.  

Petra will be offering the shortfall shares for sale at a fixed 5c. Interested purchasers will need to Bid that price to be successful. Otherwise the shortfall shares will flow to the sub-underwriter (also @ 5c).

3.6 (b) Underwriting and Sub-Underwriting (prospectus, p.6):

As soon aspracticable after the Closing Date, following any allocation of ShortfallShares pursuant to paragraph (a) above, the Company and the Underwriter willseek to procure the placement of any remaining Shortfall Shares tosophisticated and/or professional investors (Shortfall Bookbuild). TheShortfall Bookbuild will be offered at the same price as the Offer. No Sharesunder the Shortfall Bookbuild will be issued to Squadron Resources (or itsassociates) or any related parties of the Company.

You know that I'm not an apologist or mouthpiece for anyone and that I call it as I see it, without fear or favour. It's what makes me so adorable. (Silence!)   

In this instance, however, I think ASIC have misfired. If there was any real prospect that Squadron would end up controlling 61% of the company I might share their concerns, but that's not gonna happen. With BMM sticking their hand up for an additional 10% his preliminary final holding has been lowered to ~31%. And that's before we account for any the more remaining shortfall shares which may well get placed during the bookbuild to bring him under 20%.

There appears to be a real problem with ASIC at the moment. They were asleep at the wheel with their oversight duties by allowing our previous 40 x technical compliance breaches relating to cleansing notices. That doesn't excuse our management who were primarily responsible. Add ASIC's multiple oversight failures that have been exposed during the current Financial Services Royal Commission. And now we have ASIC stomping into the middle of this raising with an elephant gun, with little regard for how their actions might actually exacerbate the very thing that they are expressing concern about! It's gob-smackingly inept! There are much better ways to maintain effective active corporate oversight without risking handicapping your target in the process!

PS. Sorry if there are any oddities in the formatting of this. The new HC input window is really fighting me atm...