15% rule. This is a complicated rule but "bare bones basics" are that WITHOUT shareholder approval a company must not issue more than 15% of new shares based on what it already had on issue 12 months before the proposed date of new issue.
The formula also takes into account how many shares were issued in the last 12 months. That's the basics of it but the formula makes it a little more complex.
Anyway there is a point at which a company cannot issue more shares because they have reached their 15% limit.
To get around this the company holds a meeting and asks shareholders to RATIFY /APPROVE all recent historical issues as a separate shareholder approves issue ( sort of like post dated approval)... which means their 15% starts fresh.
The way I read it, the shares PLV wishes to issue fall : A) within the 15% PLUS B) earlier agreed shareholder approvals to go beyond the 15%. at an earlier general meeting.
SO that is why the release reads " within current capacity"
We are voting not to approve this GNR issue, but to provide PLV with approval to start their 15% allocation from scratch. WE approve all previous releases under the 15% rule as "post dated shareholder approved issues" and as such nothing has been deemed to be issued under the 15% rule ... they can start fresh.
If this is rejected, PLV does not have permission to issue more FUTURE shares for a period of time based on the formula. But these GNR shares seem to fall within their capacity to release.
PLV wants to issue more shares. It seems they will call a urgent EGM to get approval and have already secured GNR's approval. It's in the bag. Who are the shares for???
PLV Price at posting:
13.5¢ Sentiment: None Disclosure: Held
