They have underwriting for $3m of the SPP, so they have $5.3m already. They are providing ample opportunity for shareholders to avoid/minimise dilution. The $100k limit provides ample opportunity for those who wish to increase their holding significantly.
They have engineered a raising that they think will see them through to profitability in 3 chunks. The SPP, the options, the piggyback options. Listen to JWs final comments in the briefing. He seems pretty confident. Given the failure of the previous options price points, they have set the option trigger points very low this time. The piggyback options are around the SP earlier this year and they have two years of life.
I believe the current selling is for recycling back into the raise. The options aren't being priced at $0.003 (i.e. $0.013-$0.01). They are currently a bit less as the SPP raise price will be VWAP - 2.5%. It will be interesting to see what the final price is.
The current SP is being set by the need for a successful capital raise. After the raise, the SP should adjust back towards the market's view of the company's value. Hopefully, once the contract is announced, the SP will move towards the true value of the company. Whilst there are high risks, there are also high rewards on offer.
BLG Price at posting:
1.0¢ Sentiment: Buy Disclosure: Held
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