I have friends and relatives who are shareholders in various...

I have friends and relatives who are shareholders in various companies, they have absolutely no idea about any detail of the company they own or the implications of various announcements, placements etc. Some of these people are sophisticated investors. The average shareholder does not do much research or have much knowledge on the shares they own.

My point is that those selling at the present 6 cents, probably saw the headline of 1 share at 7c + free attaching option, so think it’ll get sold down to maybe 5c. Only a small percentage of shareholders read HotCopper where amongst all the other rubbish some insight into the issue is available. You actually have to delve into the prospectus to find out this issue is subject to shareholder approval, as for the 75% rule under listing rule 7.1a most would have no idea about that.

The AGM has to be held by the end of May, so I’d expect a Notice of Meeting start of May (28 days notice required). That will clearly lay out the required approval, one of the resolutions will be the vote on issuing the free attaching option.

I can’t see any of the top 20 voting for it even if they participated in the Placement.

Take #20 who holds about 5m shares

5m shares @ 7c is valued at $350k,

The options represent 10% of the SOI, so dilute this holding by 10% = $35k

If this shareholder say bought $50k in the placement (714k shares + options)

At 2c the options would be worth $14k

In this example the shareholder is out of pocket, he’d have to have bought about $100k worth to break even with the options.

Would someone who has $350k worth of shares invest another $100k in a placement - unlikely IMO

You can work this through with different share prices and you get a similar result. Those with more than 5m shares are even worse off.

IMO selling your shares below 7c is very dangerous, the options almost certainly won’t get voted up, we’ve just had at least 2 players interested in partnering in our GA & phosphate projects. It wasn’t that long ago we were trading around 9.5 - 10c, a few more SOI now offset by funds in the bank, IDC now conditionally approved, the long lead items built and delivered, we just need a basic build of a plant to assemble this equipment in.

This sell down is either by holders who don’t understand the options, or is orchestrated possibly by parties wanting to partner with us. The constant posting of negative misinformation is the equivalent of a company employing a lobbyist to persuade a Government. Social media is very powerful and isn’t lost on such people, especially on thinly traded stocks like Minbos.