Yes, I saw this coming. Yes, I encouraged everyone to vote for...

Yes, I saw this coming. Yes, I encouraged everyone to vote for additional placement capacity in November 2023 as that was a back stop option if debt was not ideal or viable.

Clearly, the debt was taking too long and the cost of debt would have been around $2mln in total including interest. So the company decided to go for equity.

Raising up to $10mln at what appears to be a $2mln discount to current price is equivalent to the debt option when you take into account a further delay to expansion as a result of no financing.

I think it's prudent capital management.

The number of shares to be issued is about 175mln at 5.7c. The 70mln options that expired in December 2023 were at 5c. So when you take that into account then the raise price is effectively 6.2c.

Buy, subscribe and hold