Tangible is correct, up to $3.5m raising inc $1m SPP, no free options for the SPP as far as I'm aware, but the terms for the SPP are no different to what the retail shareholders get, so the company is making sure that existing retail shareholders get the same opportunity.
It's a big amount to raise in this market, and the CR is being undertaken by a new mob, reflecting new types of investors coming on board (i.e. more insto money, as opposed to the more retail base of Taylor Collison). As management indicated to me (and I completely agree with them) they are starting to get to the real "business" end of their development phase, and have need of a bigger and more strategic broker relationship, and this is an avenue to getting longer term insto money, as opposed to short term flighty retail shareholders (no disrespect to small retail shareholders, but as a general rule they are flightly, and can make the sp very volatile when there are a lot of them, and KNL has 1,800 different shareholders, which is a lot. If you take out the top 20 shareholders, then the remaining shareholders have on average 40,000 shares each, which is lots and lots of small parcels). TC are remaining on the register, and are fully supportive of the companies path.
It's a shame that the Merelani deal and the TK off-take couldn't have been finalised first (before the CR), however I understand that when you have a potential cornerstone investor leading you and wanting to put money in now, then you don't really want to make them wait (and run the risk of them changing their mind if the market changes in the interim). At the very least, the actions of the company in offering a SPP indicates there is no hint of any "nudge nudge wink wink" deal with the cornerstone investor being able to buy in cheap before the upcoming announcements, because every single shareholder is going to get the same opportunity.
For what it's worth, I'd personally urge every holder to take up their allocation (assuming the price stays above the offer price, of course), but then I've been urging everyone to buy up for the long term anyway.
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