It seems that commenters aren't understanding that whilst the company may have some discretion on some matters (indeed it reserves some rights to change terms and conditions in its documentation - which frankly worried rather than assured me - those sorts of statements are always subject to limits of the law - but often most people assume the company directors or authorities know those limits and will observe them out of their own good character or because of fiduciary duty or something) - like what to do with scale back if there is more than $2m dollars worth applied for (allowing for lots of starry eyed possibilities of how much could up to $30k worth buy you with accompanying options (30,000 at 20 cents is 150,000 shares etc) if you can get them under the SPP down around 16 cents etc) - but the company doesn't have discretion on all matters.
That I think is the point of the reference to Listing Rule 7.2 and Exemption 5. The ASX rules may be placing a limit on the directors discretion towards excessive dilution of existing holders by new holders. Is it ? What is it?
I went through and re-listened to the discussion at the AGM back in November 2022, its near the end of November. Geoff Brook said words to the effect that no cash raising were being contemplated then. Ross had nothing much to add to that comment of his at that time.
Yet not that long after November 2022 something must have changed as they did do a cash raise in April 2023. And there has to be a bit of planning to do that early April after late November.
Its important to understand what the actual legal (under ASX listing rules) lowest price is - the directors probably don't have discretion to go below that - though they might try it though if they thought no one would notice or complain. Anyone seduced into the appeal of getting cheap options and lots of cheap shares might be inclined to vote for the Director Placement and approve the options to SPP in the same go.
But what is more likely to come first looking forward - results that lift the price above 30 cents or another cash raising to get fund to continue trials to try to get results that are latter stage - like phase 3 versus phase 2 or to continue funding phase 2 as it extends out in time?
If this raise is deemed okay - they why not raise again the same way at 12 cents or so in a years time with discounts and options?
CYP Price at posting:
17.5¢ Sentiment: None Disclosure: Held
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