Anyone notice this clause for KTM to escape its underwriting...

Anyone notice this clause for KTM to escape its underwriting commitment?

"the S&P/ASX All Ordinaries Index decreases to a level that is at least 10% below the level of that Index as at the close of trading on the date of the underwriting agreement and remains at or below that level for 3 consecutive trading days;"

The ASX has recently range traded 7% in a day!

So lets say there 60% take up. That will leave about 94m shares. Ankla will take 34% of those leaving 62m shares.. say 58m after the other director fulfils his commitment. So KTM will have to splash out $754k as lead underwriter. And for this they get paid $150k? And! can back out if the ASX has an off week or 2? Money for jam unless someone can correct me here.

Bigbert, I think the official answer would be 1.3cps was chosen after a "market assessment". Basically KTM are guessing and trying to get away with taking on as little risk as possible and know (for ANO) its them or the highway.

In all parties defence however, the equity market is anything but flash at the moment, so an $8m nano-cap wanting to tap markets for some serious $$ is going to be punished.