re: *** daily reminder ***munch & pillman Hi This-is-it,
You're right about the opporutnistic placement which resulted in $3.5M coming in at a cost to shareholders of 77M shares issued @5.4975c.
To account for the $3.5M loan, ~63.7M shares should have been issued. In fact, a further 13.3M shares were issued, raising a further $731K.
So, $4.23M was raised in circumstances where the market was only ever aware of $3.5M being raised.
The effective cost of this placement (and the additional funds raised) was 1.5025c (based on a 7c prevailing share price on 29/8), or $1.15M. That was the amount of shareholder wealth that was effectively passed through to the lenders as a result of the Findlay loan facility.
Now, some people will consider this only paper (choses in action, or scrip). others, however, will consider it to have been dilution, in which circumstance, shareholders ended up being $1.15M worse off for the Findlay loan experience.
Now, the end of September may well change things, but what will not change is that the Findlay loan arrangement was a rather expensive form of financing, no matter which way you look at it. Even factoring is cheaper.
MUL
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