I have no understanding why this kind of a deal was ever made, even approved unanimously by the directors. I just wonder if somebody could help me to understand this kind of deal. The cost of getting everything done is big and earlier corresponding deals have been done at a much higher level than the market price. This is some kind of a favor to somebody, who could very well buy these shares from the market without the big bureaucratic hassle.
Here is now what is on resolution 7 as an "explanatory memorandum" which does not explain why this was done.
"The securities were issued to unrelated sophisticated, professional and other investors exempt from the disclosure requirements of Chapter 6D of the Corporations Act who were identified by the Company. • The total number of securities issued was 9,543,840 fully paid ordinary shares. • The shares issued will have the same terms and rights as, and will rank equally with, the Company’s other fully paid ordinary shares. • The shares were issued on 21 September 2022 and an Appendix 2A was released to ASX on 23 September 2022. • The shares were issued at $0.0135 (0.0135 cents) per share. • Approximately A$128,842 before costs was raised from the issue of the shares the subject of Resolution 7. • A voting exclusion for Resolution 7 is contained in the Notice accompanying this Memorandum. The Directors unanimously recommend shareholders vote in favour of Resolution 7".
ATH Price at posting:
1.3¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)