It should be the opposite. If demand was so insane then the 'top up' buyer/s should have been made to buy on market and increase company and shareholder value.
Instead the company has done the following:
The dilution at this point has been 'insane'.
CCO / FIJ has completed on average 1 raise per quarter for the past 2 years.
The latest has seen CCO / FIJ excel and complete in my opinion 4 raises in the 1 quarter.
How?
1. 18/2/2024 - $1,000,000 placement at $0.045c (222,222,222 shares) and 1:1 free attached options per share at 0.06c
2. 26/2/2024 - $515,000 'top up' raise at $0.05c with 1:1 (103,000,000 shares) free attached options per share at 0.06c.
3. Conversion of capital $700,000 at at 15% discount (0.004c) within 10 days of cap raise 1(I assume it must be business days as no notice of conversion has been given to the ASX). Another 175,000,000 shares.
4. 325,222,222 options, issued at the currnet market price (Never ever seen that before!). Options are usually issued at 2 or 3 x the head price.
I can only assume the company has issued the options at such attractive terms 1) to get the raise money in the first place and 2) set at a price so options are exercised ASAP to convert to cash - effectively another cap raise.
Cap Raise 1 - 222,222,222 shares
Cap Raise 2 - 103,000,000 shares
Con Note about to be converted - 175,000,000 shares
Options that will inevitably be exercised in the coming 3 - 6 months as the heads get sold at todays price - 325,222,222
This is a grand total of between 500,000,000 shares excluding option, or 825,222,222 shares including options.
The SOI before the capital raise was circa 850,000,000
Thats a circa 100% increase to SOI and 4 capital raises (in my opinion / optics) in the space of 1 quarter.
A new record for CCO / FIJ
and at the expense of 50% dilution to existing shareholders and + 25% options in the money from day 1 which will potentially cap and continue to erode shareholder wealth over the foreseeable future.
This excludes 94,879,374 options being approve at EGM 1 March 2024.
Refer ASX announcement 31/01/2024 - "Ann: Notice of Extraordinary General Meeting/Proxy Form"
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