I don't think that they would consider issuing the balance at a discount, for the following reasons:
1. They don't 'need' the money, yes it's always good to have more but I think they must be cognisant of the fact they went for as much as they could opportunistically get and that the primary goal was funding the IST which was already achieved before the 1st and 2nd shortfall placements. If they actually needed the money they would've bitten the bullet and paid the huge underwriting fees required.
2. Management and Board participated in raising at 5 cents, why would they allow investors to steal shares at 4 cents when there's no immediacy to their need for capital?
3. They would be infuriating every single shareholder (both existing and new) who participated at 5 cents. There's no way their financial advisors BBY and Azure would recommend this as all of the investors they spruiked the stock to in order to get them to participate would never forgive them, and burning private clients is a big no-no for retail heavy brokers like those guys.
4. ASX listing rule only allows management to place 15% of issued cap without shareholder approval in any 12 month period.
5. If they really wanted to place the balance, they could've rushed PAT-SM6 full results to market to get the price up to make it more attractive at 5 cps
I'm as surprised as everyone else that no statement has been made, but such is life. I think one thing a number of small caps neglect is investor relations/communications. I can't remember ever thinking 'I wish they'd keep shareholders less informed', continued updates are a great way to maintain shareholder interest and excitement
GLTA,
Z
PAB Price at posting:
4.3¢ Sentiment: LT Buy Disclosure: Held
