Warrant holders will not be entitled to participate in the Entitlement Offer unless they exercise their existing Warrants under the terms of their issue, so that they are registered as holders of Shares prior to the Record Date. Did not happen, so Augusta lose that opportunity.
EWI will not increase its holding in the Company pursuant to the Entitlement Offer. I think this means (emphatically) that Gleneagle have an/other sub-underwriter/s lined up to pick up the shortfall. I would be hopeful that they have been cherry picked as long term supporters/investors.
EWI will not receive any sub-underwriting fees in respect of this commitment. As usual, EWI continue to support the company and are not taking advantage beyond reasonable commercial terms.
The Lead Manager has absolute discretion to engage sub-underwriters to take up any of the Shares not accepted by Eligible Shareholders. SE/EWI are loosening the reigns a little, IMO. They are letting some new holder(s) in.
EWC Price at posting:
9.8¢ Sentiment: Buy Disclosure: Held
