Ann: Unilife Placement and SPP , page-40

Writer,

1st, I wouldn't be so annoyed about this capital raising if I didn't have such strong belief in UNI. The cause of my annoyance is that we should not sell ourself so cheaply for such a wonderful company.

Onto your points,
UNI say that they were able to select investors who share the company's long term aspirations. This certainly implies that no sweetener was needed.

So then I would question why they did provide a sweetener? It doesn't quite add up does it?

On the point that the options are effectively locking in further funds, well no they aren't. We only get the funding if they choose to exercise their options, which they will only do if it is in their interest, not our interest. The options are an out & out give-away, I can't see them any other way.

Of course we don't know if they WILL be exercised. 1st scenario is that share price is significantly above the option exercise price, so they DO take up options. In this scenario, we probably could have raised funds less dilutively elsewhere. 2nd scenario is that SP is below option exercise price, they don't exercise so we have to seek funding from elsewhere.

The point is, these options will certainly not have a positive impact on UNI. It's not like they will exercise the options if UNI is trading at 70 cents. Either way, we lose, therefore the issuance of such options is a freebie deal sweetener.

Do you not understand, it DOES matter what price the SPP/placement occurs at. Yes UNI's prospects are great, but they have just given away 6% of those prospects for nothing.

P.S. I think UNI has left itself open to either scaling back, or increasing the size of the SPP. They seem to cover both options, I think they are just keeping their options open rather than inferring that it won't be scaled back. Equally, thats just how I interpret it, you may be right on that.