Going over the capital raising documents it appears that the company is aware that a maximum uptake is unlikely. The documents indicate that the company is seeking to raise $12 million from the SPP. A maximum uptake of the 480,386,224 shares available for issue without shareholder approval is approx. $18.4 million. To raise the $12 million would indicate an uptake of about 65%.
Interestingly also, the documents indicate that if the total amount raised from both the SPP and the Overseas Offer comes to $12 million then the company will have raised a sufficient amount to implement it’s business plans with ‘minimal contingency’ up to June 2014.
Theoretically, the maximum amount that could be raised from both the SPP and the Overseas Offer is AUD $25,886,831. Raising $12 million would indicate an average uptake of 50% by shareholders here and overseas and should see us in an acceptable position for the next six months at least. Anything else would be a bonus….
The recent deal with Synergy International is somewhat game changing. I still feel that we will not approach anywhere near a maximum uptake but this deal, as a potential template for other deals, should be the shot in the arm needed to get us to the 50% mark hopefully.
CFU Price at posting:
4.2¢ Sentiment: None Disclosure: Held
