IPO - UUV Aquabotix Ltd, page-183

It's an interesting one, Mel. DRO listed with the exact same structure and started strongly. I imagine a lot of this is market related but you also make a fair point.

Feel free to correct me, as I always enjoy hearing your perspective, but my thoughts are these.

Not overly fussed if I make my money from UUV or (UUV + UUVO) i.e. if any weakness is made up for in UUV by UUVO, then my portfolio is no worse off.

The other consideration is that UUVO is close to the money, so each incremental step up should offer a higher payoff than UUV, alone. i.e. the payback on UUVO is non-linear, compared to holding UUV, which is linear. This only increases as UUVO becomes more ITM.

Let's say they didn't issue any UUVO. If price gets to, say, 30c, UUV will be up 50%. $100k invested would be worth $150k.

With free 1:1 UUVO, if UUV gets to 24c, UUVO will trade at ~6c. So i've made the same 30c and $50k profit, the only difference being the combination of UUV + UUVO, vs UUV, alone.

The main weakness in the structure that I see is the dilution price in the future, i.e. if the business goes well, they could have raised capital at a much higher price than 22c.

What do you think?