This cap raising is diabolical on several fronts and raises questions around whether the Board is acting in the full interests of the shareholders: - The company has been trading without any real price volatility at a level well above the raising price - The cap raising is not a large amount relative to the scale of the company and is not an emergency raising
On these two score alone, a >40% discount is well outside market/what one would normally expect.
Given it was not a large raising, why didn't the Board offer it to shareholders first as a rights/entitlement offer? If the Board was concerned about raising the full amount, it could have had the rights issue underwritten.
I would like to understand how much the Board members will be subscribing for as part of the Tranche 2 placement - will it be above the max $30k each shareholder is entitled to under the SPP (which could/will be subject to scale back)? The Board may suggest that they were seeking to demonstrate 'alignment' by taking up a portion of the placement but they could have done this by stating that they would each take up the max. entitlement under the SPP.
I will be voting against the Rem Report and against approval for the Board members to take up a share of the placement. I hope that other concerned shareholders do the same
PEK Price at posting:
11.0¢ Sentiment: None Disclosure: Held
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