"They will get the full $15mil. All management have to do is agree the extra funding for an insto or sophisticated investor to pick up the shortfall of $5mil. Don’t thing there will be any issue here"
The SPP offer has closed and with it the abilty to take oversubscriptions. A current legal market mechanism to get to $15 million simply doesn't exist. The offer has closed and was fully subscribed. They can't place shortfalls to the oversubscription component of the SPP as the offer is closed and there is no facility to deal with oversubscriptions anymore.
The trading halt announcement is curious because from my reading under the previous prospectus that was lodge the company still had the abilty after the SPP completed to raise $5 million through Patersons. Why would they halt trading based on a capital raising when they already have the Patersons option? If I had to guess Patersons have pulled out and they have found other parties for a top up.
You wouldn't need to halt if Patersons was going ahead, their rights and the timing were all already explained in the previous prospectus that was lodged.
Question I think is who are the new guys, how much is to be raised. Better hope that they haven't already started down the convertible note path because that is generally another sign the company will die a death by a thousand cuts. Esh
AVZ Price at posting:
4.4¢ Sentiment: None Disclosure: Not Held
