It's really pretty standard for management of small caps to seek...

It's really pretty standard for management of small caps to seek the 10% placement capacity. Sometimes they use it, sometimes they don't, but small caps usually want or need the flexibility to raise capital without seeking shareholder approval. It often makes it too slow or difficult to act decisively when opportunities arise and what management would want a bunch of often ill-informed shareholders with unrealistic expectations to have a veto over their actions? And rights issues are expensive and uncertain (often shareholder in small caps have taken their position and aren't overly keen to put their hand back in their pocket), understandably not often favoured by management.

While it can makes sense to raise 18 month worth of capital at a time it certainly has its disadvantages. I mean which would you prefer, raising, for example, $10m at 30c now or raising $5m now and $5m in 9 month time when, if things go to plan, the Duncan facility would be completed, CBD pills selling well and share price is at 50c+. It's a gamble either way but if the execs really believed their plans would come to fruition the latter seems the preferable course.