Ann: Trading Halt, page-10

I was one of those investors that got the invite.

This is what is being offered:

Firebrick Pharma Limited (‘FRE’) is seeking to raise A$1.7M via a placement at A$0.085 per share. The offer also includes a 1:1 free attaching unlisted option, exercisable at $0.125 each, with an expiry 3 years from the date of issue.

Took me about 0.5 seconds to do a hard pass on this one.

It really rubbed me up the wrong way when they said "free attaching unlisted option". Even at the current price (it will probably fall after the CR - that's what usually happens) it is costing 1.8c and that in itself is not cheap, especially since the option is not tradable.

Quite a few small companies are trying to dangle carrots using far out of the money options that will most likely never vest - 4DX did the same thing. The only way that anyone in the right mind would take this up as if they wanted a big stake and the company that they couldn't purchase on market because of a lack of liquidity. Given the pricing I'm guessing management already has someone lined up.

It is very rare that CRs are good news for existing shareholders, but if this CR gets over the line, they've dodged a bullet.