@beefarmer
That would be great ..... ' Eventually ' ...... However , I don't reckon it will come before they announce the results of the take up of the ' Entitlements Options Offer '......or moreover , just how many times it has been ' Oversubscribed
An important point we should be remembering and discussing here in regards to this entitlement's issue is the overall ' Quantity ' having been put on the table by comparison to the Original Note #10 of the previous meeting resolutions.
So here's what we know :- We know that Resolution 10 requested approval for the ' Future ' issue of upt to 1 Billion Shares right ....... So beginning from their we can detail what has more or less transpired since then in terms of Capital Raising's as follows :-
1.) The Company will issue 271,200,000 fully paid ordinary Cirralto sharesunder the Placement. Except for the participation of the Board, noshareholder approval is required as the issuance of shares is within theCompany's pre-approved placement capacity pursuant to the approvalobtained by the Company’s at its general meeting held on 24 July 2020(Resolution 10).
So if we COUNT ' ALL ' 2.5 cent Options as shares which I don't believe we are required to under the requirements in calculating ASX capacity limits 7.1 or 7.1 A , that would mean we would potentially add the 100 million 2.5 cent options issue to Canary Capital , and the 3 million 2.5 cent options more recently issued in consideration of services provided and equivalent to $24,000 . But again that would seem NOT to be a listing rule requirement per se se. Note also the specific rule governing Options in so far as the calculations of ASX 7.1 & 7.1 A capacity limits as per below :-
ASX 7.16 - Rules that apply to the issue of Options :-
" An entity must not issue options if it would have more options on issue than underlying securities , except under an offer of one ordinary security and one option for each ordinary security. "
So currently we have a total of 1,590,992,268 Ordinary fully paid shares , and 231,701,282 options at ' various ' strike prices and at various expiry dates out to July 2023 . This of course is ' PRE ' Entitlements Offer .....so that would be potentially a total of 627,637,009 potential number of options ' assuming ' full take up and NO oversubscriptions.
2.) as per the announcement of 14th eligible shareholders on thebasis of one (1) option for every eligible four (4) shares held (Option Issue), being up toapproximately 395,935,727 options.
So folks there appears a couple of significant takeaways from the above analysis and numbers. My FIRST major observation would be that it appears the Company has been really ' switched on ' in the way they have put the numbers together - With particular emphasis on eliminating the previous ' Convertible Securities ' which otherwise would have factored into , and effected the ASX's 7.1 and 7.1A calculations . And this in turn would have limited to an extent the flexibility of using more traditional capital raising strategies with respect to its shareholders.
The fact that they have chosen this method with regards to using ' Options ' would also reaffirm their exceptional capital management focus and strategies.
My SECOND observation would suggest that given the total number of options having been issued in the last month , and which if considered to represent ' future ' shares ' and then combined with the actual 271,200,000 shares raised in the $2.7 million preceding raising ....COULD represent a difference of 372,363,991 ' future ' shares when compared with the 1 Billion which was approved in Resolution 10. Or if you discount the Options as NOT being capacity limited shares under 7.1 or 7.1A listing rules , then the number could be as high as 728,800,000 still available to be issued and approved under Resolution 10 in the last meeting.
Either way folks, it would appear that at the least , there is some considerable scope for further ' Future ' raising's of at least DOUBLE ....to almost 2 X's the amount of shares still available and approved by Resolution 10......and interesting there has been NO indication in the Prospectus as to their ability to take ' Oversubscriptions '. And on that note , I can't help but wondering if they will ' Extend ' the offer in order to more accurately account for the potential ' floodgates of oversubscribed shortfall applications.
And so based on these numbers , I can't see what's stopping them. To keep in line with these possibilities , I have applied for 4 X's my entitlement and participation in the ' Shortfall ' ....and I await with much anticipation to the results......
(20min delay)