jwt - In summary, the ASX only allows listed companies to issue in any twelve month period new shares and/or options equivalent to 15% of their total shares on issue at the start of that period. I presume the rule is designed to protect existing shareholders from dilution, as issues approved by existing shareholders (generally those to them such as share purchase plans and rights issues) are excluded from this 15% limit. The rule, in other words, restricts the company from making too many placements to 'sophisticated investors'.
The only way a company can issue more shares after they've reached their 15% cap (which is what MIK is saying has already happened in the eleven weeks since the AGM) is if they ask their shareholders at a general meeting to ratify, after the event, the share issues that have caused them to reach their 15% cap. These share issues are then excluded from the cap as they are now authorised by the existing shareholders (assuming that ratification is given).
MIK would not be holding an EGM if there was not a need or intent to issue more shares to sophisticated investors, which they are currently precluded from doing so.
Which, interestingly, also suggests that they don't believe an SPP or rights issue is appropriate - hence more dilution coming up. Perhaps they think, perhaps correctly, that many shareholders would see such an opportunity as throwing good money after bad?
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