GRB directors are putting up a proposal to be able to issue a...

GRB directors are putting up a proposal to be able to issue
a further 10% of shares to raise funds.

Over the last few years GRB directors has issued shares at a massive rate and in
so doing, created enormous problems for the future, in servicing these
shares and ultimately rewarding shareholders with dividends.

The shares on issue are now 1011,556257

That is over ONE BILLION SHARES currently on issue.

And now they want the ability to issue more!

Let’s look at the consequences.

And for the purposes of simplicity of this discussion,
let’s round the current shares on issue down to 1 billion.

Now let’s look at their possible? profit for the fiscal year.
Again for simplicity let’s say it is
optimistically an unlikely $10 million......a substantial % increase
over last year.
That equates to earnings per share (EPS ) of just one cent.

A $10 million profit is NOT a very impressive figure ...for a company
with one billion shares.
EPS ........a trivial ONE CENT.

So any talk of paying dividends in the near future is quite ridiculous.
Even more so if they intend raising funds.

Next let’s look at what price any future shares would need to be issued at
in order to ensure they are taken up.
They would be issued at a discount rate to so called “sophisticated investors”
And in the process add in excess of 100 million extra shares
to the register..... further diluting the EPS
And in the process, in the overall scale of things, raising a trivial amountof money.

This is axactly what happened last times ( plural  ) GRB raised funds
The price the shares were issued at in order to raise the capital,
while being perfectly legitimate, was an  example of massive shareholder
dilution as more and more shares were issued,
to a point where we now have more than.

One thousand million shares on issue.

Totally irresponsible behaviour to even contemplate this again.

The directors need to pull their collective heads in
and use existing positive cash flows from within the business to fund
any further growth.

A very disgusted,
and less than enthusiastic
bendigo