MEL is going to get money from options too (if approved by shareholders). So the money received may be $2 million from SPP and $666,667 from the exercise of SPP options. Total number of new shares after the exercise of the options will be 106,666,667 which will be around %27.3 of shares before the cap raise. The company says:
'Scale back The Company is seeking to raise up to A$2 million under the SPP. In accordance with the ASX Listing Rules the number of Shares to be issued under the SPP will not be greater than 30% of the number of the Company’s Shares on issue at the Record Date. However, if the Company receives applications in excess of A$2 million the Board may, at its sole discretion, take oversubscriptions, subject to compliance with the ASIC Instrument, the Relief Waiver and the ASX Listing Rules. Unless the Company exercises this discretion, however, the Company may scale back applications received'.
So, if they want to raise more money than $2 million, they will need to justify it under the new covid rules (Relief Waiver). That's my interpretation.
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