Pattos gets a fee for conducting the raising, just like any other broker would, it’s a cost of doing business when raising money. The oppies were a bit of a gimme but the strike at 25cps is not a total give away. How hard done by do you think you are under the placement and raising? Many companies wouldn't have bothered with the SPP all together.
The SPP allows you to avoid being significantly diluted by the placement, at an 18% discount to any reasonable VWAP that is applied in capital raisings. You have a choice to participate and fund the further growth of the business, if you choose not to then there isn't much to complain about. On top of that, they made an earnings accretive acquisition in a company that has attractive growth potential on top of the expected growth in 1A and Bp+. That should be incentive enough to participate in the offer.
UCM Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
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