The upshot is that this Share Purchase Plan (SPP) offer is, in my opinion and from my understanding and with some extra reading, bona fide and now clear......with the following assumption......
The max limit for a SPP is $5,000 in a 12 month period (from ASIC). There appears to be a recent move to increase this to $15,000 hence the ASIC exemption sought as it appears that the limit is still at $5,000. ASX exemption sought probably relates to this, as they also have attached rules relating to SPP's. So I assume that the necessary waivers are granted......
So, approx 946 share holders can take up a full subscription of $15K (34,883 shares) each at 43c, to raise $14M (33M new shares, or 30% of current total).
But some will take only a portion, so realistically a few more share holders will get in. Obviously if more than 946 share holders take up the full offer, then the maximum allocation of $15K per share holder will need to be scaled back.
In my opinion, this SPP has only a positive affect on the prospects for MAK. $14M in the bank is $14M in the bank. It is not dilutionary if you believe in the prospects of the company, as the capital raised will more than pay for itself as MAK transitions from non-producer to producer.
Every market participant is different. They have different agendas, different biases, different risk profiles, different time frames, etc.
MAK is an evolving story. So get on, get off, get on then off, or get off then on. It's your decision. Doesn't change the big picture.
Regards
AEV Price at posting:
52.6¢ Sentiment: LT Buy Disclosure: Held
