sp, page-26

"Managements only defence is maybe they thought a spp would not be fully subscribed by retail investors? This I can accept."

ABDM

I have to admit, you made me stop and reflect on the CR process. What would I have done if I was the CEO and responsible for the financial future of the company?

I have to do the CR before the SEC approval. The regulatory and cost issues with a CR after the US listing would be very onerous and exhorbitent.

The easiest (and cheapest) solution is to just do a local insto placement for the entire amount. Done and dusted in 24 hours. But this leaves the retail shareholders out in the cold and they'll be wailing "Unfair, no loyalty, mates in the big end of town" etc.

If I do just a S.P.P. there is no certainty that it will be successful. If it tanks for whatever reason, the company does not get the cash it needs to complete the trials, the SP gets trashed anyway and it could jeopordise the US listing.

I guess with the benefit of 20/20 hindsight it would have been better if the insto placement shares had been escrowed until the end of the SPP process so that all new shares would be able to come on at the same time. Problem is, the instos and sophs would possibly not take it up on that basis.

Catch 22!


After all that rambling, my conclusion is the company did the fair and reasonable thing. It just happens that the SPP coincided with a global market sell off.

I doubt that the SPP will be undersubscribed unless the market totally craps itself prior to 24 June.