Ann: Trading Halt, page-15

A bit disappointing to see capital raise done now and at such a low price. They had plenty of opportunities to do a capital raise in the past year (as this has been spoken about in the media so would not have been unexpected by the market).

Lockdowns have been going on for some time (more than a couple of months in NSW) with little hope that things will spring back to life quickly given the case numbers, so they should have done this CR earlier, to minimise the dilution as much as possible. Share price was $0.50 3 weeks ago for example.

For me, it says a lot about the management and their incompetence and lack of thought for shareholders. I've had this situation of management raising capital at the lowest of possible lows, for some other companies I own or have owned in the past, and I'm flabbergasted every time this happens. Some of these companies also then tend to buy back shares at the highest of highs. A double whammy.

I'm heartened in this case that AustralianSuper is on board to underwrite the shares on offer. I think they are quality bunch in their decision to participate as they are a long term holder and they obviously see long term value at these prices. They participated in a similarly extraordinarily dilutive cap raise at rock bottom prices for another resource company I hold, and now that share price has bounced back 140% due to market conditions within a few months. Not saying that will happen here or this quickly, but perhaps if you're a long term holder, there may be value if it drops to about $0.35 per share.