Ann: Trading Halt, page-11

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jogo

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28/02/23

13:55

Post #: 66512428
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Originally posted by ferrisb: ↑

M50, I'll explain using the new terms

Raising $2.5M via placement at 2c
Company will be selling up to $2.5M worth of new shares to institutional investors (fund managers, rich investors) at 2c each
2.5M / 0.02 = 125M = This will involve selling up to 125 million new shares (if there is enough demand for the whole $2.5M)

1-for-2 oppies with 3c strike and 3 year expiry
1-for-2 oppies = for every two shares (institutional) investors buy in the placement, they will get 1 free option
3c strike = Each option gives the investor the right to buy an extra share at 3c each. Eg if the shares go up to 5c, investors can buy new shares on the cheap at 3c each
3 year expiry = this option will run out in three years. So basically you want the share price to go up >3c at some point in the next three years and investors then have the chance to buy 'discount shares'
The options are included as an inducement. Makes the deal sexier. In a few years, DTR shares could be worth 10c. Or they could be worth 0c. Buy having that option at 3c, you get more 'upside potential' from the trade.

$1M rights issue
EXISTING investors get the right to be buy new shares (on the same terms as insto investors are buying in the placement)
$1 million divided by 2c = 50M shares. So existing shareholders will collectively be able to buy up to 50M new shares
The rights are pro-rata. So if I own twice as many shares as you, I can buy up to twice as many new shares as you can.
There are currently 566M DTR shares out there (I think). Which is 11.3 x 50M. So existing shareholders should be able to buy one new share for every 11.3 shares they currently have (if they want to throw more money art DTR in the rights issue).

Hope that helps

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Will the oppies be listed? Any indication given as to this?
DTR Price at posting: 3.6¢ Sentiment: None Disclosure: Held
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