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marykegeorge

577 Posts.

121

21/04/15

12:02

Post #: 15125679
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Originally posted by decrisper ↑

Wording in the document issued for the EGM of 12/5/2015 regarding the SPP is as follows

Share Purchase Plan
Subject to completion of the Transaction, the Company will offer eligible Shareholders the opportunity to
participate in a share purchase plan. The share purchase plan will allow eligible Shareholders the opportunity
to subscribe for up to $15,000 worth of new Shares each without paying brokerage or other transaction
costs. It is intended that the new Shares will be issued under the share purchase plan for no more than $0.70
per share.
The share purchase plan will provide eligible Shareholders the opportunity to subscribe for new Shares at the
price at which Shares were offered to investors under the Placement and the Transaction Shares will be
issued to the AGL Shareholders.
The Company is seeking to raise $10 million under the share purchase plan, with the capacity to accept
oversubscriptions (at its discretion). The Company also reserves the right to scale back applications under the
share purchase plan if the total value of funds raised exceeds $10 million.
The share purchase plan will not be underwritten. Proceeds from the share purchase plan will be used to
fund the ongoing working capital requirements of the business.
The full terms and conditions, including eligibility to participate in the share purchase plan, will be provided
to Shareholders following the Meeting.

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I don't see why they don't allow retail investors to buy up to $15,000 with no scale back at all. the extra funds they generate could be used to reduce the amount they borrow from NAB - thus not so much debt,
just extra shares listed.

Obviously some more dilution but no worries about debt being called in by the bank.

Thus existing shareholders benefit (getting more shares at very reduced price of 70 cents) and company carries less debt. A win for the company and a win for the existing shareholders!!

RCG Price at posting: $1.08 Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

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