A capital raise at [2c] for arguments sake would be absolutely diabolical. $2.1m raise assumed at 2c = 105m new shares to be issued. According to ASX there are 215,720,915 current shares on issue. So this is c.50% dilution. Assuming management/board take up 0 shares (no money to investor for arguments take) and 105m shares goes to a new insto that would mean management dilute themselves from current c.40% holding to 26-27% roughly.
This problem needs to be solved through a con note or debt or something else.
DEL Price at posting:
3.2¢ Sentiment: Buy Disclosure: Held
