Evening all,
Just to summarise the forthcoming placement (as most of the below has already been mentioned by others).
Key points:
Up to $4m (137,931,034 shares at 2.9c) will be offered to Professional and Sophisticated Investors. The s708 placement also receives one free option (exercisable at 4.5 cents) with every two shares purchased.
Current holders will be offered to participate in a SPP where management are offering to raise up to $3m (103,448,276 at 2.9c - i.e. similar terms to the placement although my understanding is minus the options), with subscriptions over this amount to be scaled back at management's discretion.
Therefore up to $7m total to be raised, up to 241,379,310 new shares to be issued (the equivalent of 12% of the current total scrip) and up to 68,965,517 new options to be issued (exercisable at 4.5c and therefore potentially raising an additional $3,103,448 down the track).
Funds raised by the placement will be used for:
Due to acceleration of roll out with new channel partners, and recent acquisitions, additional
capital is required for acquisition integration and development costs;
Further expansion capital required to expand service offering and secure additional channel
partners; and
Ongoing working capital requirement
Sanlam Private Wealth is handling the share placement.
Finally, please note the following taken from the 'Grant of Waiver from ASX and variation of incentive arrangements' announcement dated 26th Oct 2016;
'Consultancy Agreement with Dalext Pty Ltd (an entity associated with Athan Lekkas) – Cash Bonus
c. a cash bonus equal to 30% of the annual consultancy fee (being 30% of USD$362,000) within 20 Business Days of certification by the Board that the Company has raised at least AUD$5.0million from the placement of shares in the Company during the period commencing 19 September 2016 and ending 24 months thereafter (Milestone C).'
I assume that the above bonus being paid to Dalext Pty Ltd is in addition to the usual expenses (paid by Xped) associated with any placement.
Personally I have interpreted all of the above as......Dear Sanlam, please go ahead and raise up to $7m near the 52 week low ASAP, even though 'we currently have sufficient cash reserves to execute Xped activities'.
Please DYOR and if you are a current holder then don't forget to vote wisely and true to own your values.
Regards
Elpha
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