It’s how these facilities work. The company issues shares at nil...

It’s how these facilities work. The company issues shares at nil consideration which the financier holds as collateral - simply because they’ve offered the facility but it may not be used. Then when funds are actually drawn down, new shares are issued at the greater of the floor price set up the company or a 10% discount to a VWAP period.

This is from Galan’s announcement:


This is from Sayona’s 2019 announcement:

The others I’ve seen are all the same. To be honest I suspect companies don’t spell the mechanics too much because this is known as finance-of-last-resort, so they likely don’t want shareholders to dwell for too long on what the impact on the share price may be. Acuity are the same - they want to be able to quickly sell any shares they are issued to capture the best margin they can (i.e. the discount), they don’t want to get stuck holding stock.