Wazz - unfortunately I think Peter, Autosime & Cmon have their...

Wazz - unfortunately I think Peter, Autosime & Cmon have their heads around this funding deal. The final paragraph of the announcement should be the key focus for any holder - especially the pro-rata basis funding if the SP is below the .102 benchmark.

The $4.5m is just a notional figure based on the 59m shares at a notional .0765. So each month the company's "expectation" is to receive approx $750k based on the benchmark rate .102 being achieved.

Personally, with any funding announcement I wouldn't focus on the upside (ie SP exceeding .102 each month) or the headline figure of $4.5m. I'd be more focused on the downside and what that means for funding in the short term (next 6 months).

You'd also need to know if the pro-rata funding is based on the benchmark figure or the notional value of the shares being issued. Right now the SP is at approx 64% of the benchmark figure, so that
alone would represent a significant shortfall.

If I were to put a positive spin on this I'd say the emphasis is squarely on management delivering the strong news flow that they have outlined in order to get the SP up and keep it up.

The way its structured implies you need .102 each month in order to receive $750k.

On notional values it looks like the placement fee was approx $450k. Big fee for someone who wanted to come on board.

I'm not saying the upside can' t happen and by all means be positive about your investment and the future, but it's hard not to cast an eye on the downside.

Lanstead have effectively been guaranteed their 19.8% stake, so why would they want to pay any more than they had to over the next 6 months?

glta holders.