Found the following info in regards to Share Purchase Plans (SPP) legislated by ASIC.
Basically an SPP allows a cap raise without the need for an expensive prospectus and dramatically speeds up the time to collect the funds.
The price of the SPP is almost set in stone by the legislation, so the company is hamstrung by ASIC as to how much they can charge, which is a percentage of the previous 5 day VWAP, which as we know is well below our last traded price.
I think the company has done a magnificent job to get a company changing amount of cash with little to no dilution and not have to rely on shareholders for it all when many of us are already up to our eyeballs.
Legislation is -
Issue price of shares under an SPP offer must be less than the ASX market price of shares over the previous 30 days. To satisfy ASX listing rule requirements, the minimum issue price must be at least 80% of the volume weighted average price (VWAP) of shares traded over a 5-day period.
