Resolution 6 – Approval to Issue Shares to Raise up to A$1.4 million (Share Placement)
Resolution 6 – Approval to Issue Shares to Raise up to A$1.4 million (Share Placement) The Company intends to raise up to A$1.4 million in funds via a private share placement to a number of parties at a price determined by market conditions at the time (“Share Placement”). Under the Share Placement, the Company intends to issue new ordinary shares at the lesser of $0.007 or at 85% of the volume weighted average price (VWAP), which is at a discount not greater than 15% to the market price of the Company's ordinary shares calculated over the last 5 days on which sales in the securities are recorded, before the day on which firm commitments are received by the Company totalling $1.4 million. The number of new Placement Shares issued to each applicant will be calculated by dividing the amount of subscriptions paid, by the issue price. Fractions will be rounded down to the nearest whole new share. In addition, under the Share Placement, the Company intends to issue one (1) free attaching Option with every two (2) Shares applied and subscribed for, with the Option exercise price to be the same as the issue price of the Placement Shares, with each Option to have a vesting date of 31 December 2017 and expiry date 31 March 2018 (“Loyalty Options”). That is, for each two (2) new Shares purchased, each eligible shareholder will be entitled to one (1) Loyalty Option which can be exercised by paying the issue price per Option between the vesting date and expiry date. A Loyalty Option may only be exercised after the vesting date and prior to the exercise date (the “Exercise Period”). The exercise of the Loyalty Option in conditional upon the Loyalty Option holder holding the same or greater number of shares in the Company immediately prior to exercising the Loyalty Option as was held at the closing of trade on the ASX on the date of issue of Placement. For the avoidance of doubt, the number of shares in the Company required to be held by the Loyalty Option holder includes both the Placement Shares issued to the Loyalty Option holder and the existing shares in the Company held by the Loyalty Option holder immediately prior to the issue of the Placement Shares occurring. For more details, please refer to Schedule 1 for the Terms of Issue of Loyalty Options. Resolution 6 seeks Shareholder approval pursuant to ASX Listing Rule 7.3 for the issue of the above Shares (Ratification). By obtaining the Ratification, the Company will retain the flexibility to issue up to 15% of its issued capital, if required, in the next 12 months without the need to obtain prior Shareholder approval
ARE Price at posting:
0.8¢ Sentiment: Hold Disclosure: Held
