Although 245 million shares issued to convertible note holders have been disclosed to investors in the past, it still creates fear and uncertainty among investors regarding who are those shareholders and whether they will sell their shares or dump their shares in the market.
Actually, ODN management should lock those 245 million shares for selling on market at least for the period of two years or those 245 million holders should voluntarily lock their shares for selling at least two years.
Unfortunately, ODN may not be allowed to restrict their selling because the conditions in the convertible note do not allow such restriction. On the other hand, those 245 million holders do not voluntarily lock their shares for selling on the market for a specified period of time.
After the issuance of those 245 million shares, the outstanding shares presently are 527 million shares. Another 53 million shares will hit the market from the right issue. Total shares outstanding next week will be 565 millions compared to 265 million shares previously reported.
As part of the share sale agreement, it is likely that ODN will issue more shares to pay for purchase consideration of gridComm. The number of new shares to be issued for this deal really depends on the agreed share price.
If you add 565 million shares + another shares to be issued to pay for purchase consideration = .......??????
The projected total outstanding shares may be above 1 billion shares before consolidation.
After the consolidation, ODN needs to raise another $3 million to satisfy the ASX listing criteria.
The above new shares to be issued for purchase consideration and to raise $ 3 million are still unknown to the market.
Are you fear with this uncertainty?
ODN Price at posting:
1.8¢ Sentiment: Hold Disclosure: Held
