Thought it would be opportune to discuss IBX option, right issue price , funding scenario.
I myself have been very very disappointed with the way management had played out the latest capital raise by diluting the share price from a high of 2.7 to 3 cents by issuing rights at 1.7 cents + raised capital at a ridiculous discount to purely benefit an external funder while options expiry is right around the corner.
Being an advocate of IBX and it's tech for a very long time, for the first time I have realized that the company is purely mismanaged and the top management are possibly running a scheme to benefit themselves as it has been nothing but shareholder value depletion since 2021 where the new CFO was appointed.
Options Expiring April 2023 The company has a total of 233,301,933 options on issue as per the latest Annual report , which would have meant that a total of $7 Million AUD would have been raised by end of April.
If this was the case, what was the immediate need to raise funds at 1.7 cents by issuing 882 Million new shares? 4 Times more the amount of shares issued than what they would have issued at options conversion plus 4 Quarters worth of funding already in the bank.
Why go through this option if not to benefit Mercer???
As a holder of options myself , I would avoid subscribing into my options and have decided to utilize the funds that I had available for conversion to purchase shares on market - I would receive double the amount of shares if I would have subscribed to the options at .03
Rights Issue Expiring March 2023 Offer price of 1.7 cents with the share price at 1.6 cents is a joke. The company had announced progress but all we have seen is a depletion of share holder value. Without a feasible plan and news flows to assist the growth in share price us holders should avoid subscribing to this offer.
Shareholders who had subscribed to the options at 5 cents in 2021 would share the same sentiment? Their investment is worth 66% less.
Wouldn't we rather buy shares in market at 1.5-1.6 cents??
Mercer Funding
"The first tranche of convertible securities with a face value of $1.65 million to be purchased for $1.5 million. This entitles Mercer the right to convert the note into fully paid ordinary shares at 90% of the lowest VWAP during the 15 trading days immediately prior to the issue of a conversion notice, subject to a floor price of $0.0125. Should Mercer issue a conversion notice within the first three months of the 18 month term the conversion price will be fixed at $0.03."
If I'm understanding this correctly; -Imagion had received $1.5 Million immediately from Mercer. -If the VWAP is 2 cents then Mercer would be able to convert the securities at 1.8 cents. Which means they would receive 91.6 Mill new shares in IBX for no further cost? -If the VWAP is 1.3 cents then Mercer would only be able to convert the securities at 1.25 cents. Which means they would receive 132 Mill new shares in IBX for no further cost? -If the securities are converted withing the first three months of the contract Mercer can only convert the securities at 3 cents and nothing less (Assuming this is to safeguard the options conversion in April if it ever happens) .Which means they would receive 55 Mill new shares in IBX for no further cost?
So does this mean that Mercer would not have to invest further funds to receive these shares?
What would stop them from manipulating the share price to keep it at lower prices to get more shares in their bag?
All in all it looks like a circus at the moment and any clarification to the contrary would be great!
Have reached out to Imagion to provide reasoning but have not had any response , which is very disappointing.
IBX Price at posting:
1.7¢ Sentiment: Hold Disclosure: Held
(20min delay)