Haven’t been on HC for a long time but thought I’d jump on and have a look at everyone’s thoughts.
I’m not confident that this will be a positive outcome.
I had a look back at last year’s AGM resolution 13/Part G which suggests to me if they have been given the waiver beyond three months, this will be a raise of $5,000,000 at $0.10 units.
Rationale – Say the trading halt goes through to Friday, if they are doing a placement more than likely it will close on that day with shares issued on the day following closure being Monday. Counting back our only two trading days in the days prior are Monday20th ($0.135) and Tuesday 21st ($0.125) which averages $0.125 for the five trading days prior to allotment. Take the 80% discount off and we are back at $0.10. Now tell me the share price movement hasn’t been manipulated there??
This placement under lats years resolution 14 may have already happened so my theory could be a long way off although I will blame Mt Burton as I seem to have lost track of the SPP and placements he has completed in the 3 years I’ve been around.
Part G – Approval of 50,000,000 Share Placement Facility
Resolution 14 – Approval of 50,000,000 Share Placement Facility
To consider, and if thought fit, pass as an ordinary resolution, with or without amendment, the following:
"That, in accordance with ASX Listing Rule 7.1 and for all other purposes, the Shareholders approve and authorise the Directors to issue up to 50,000,000 Shares (“Placement Shares”) at
an issue price each of not less than 80% of the average market price of Shares over the last five days on which sales of Shares were recorded prior to the date of issue of the Shares or, if there is
a prospectus relating to the issue of the Shares, over the last five days on which sales of Shares were recorded prior to the date of the prospectus ("Placement Facility") to institutional,
professional, sophisticated and other investors on the terms and conditions described in the Explanatory Memorandum."
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