Ann: Additional $10M Strategic Investment and Abra Update, page-26

I’m on the fence about this deal... at first glance it looked okay but the longer I’ve thought about it the less I’ve liked about it.

The options at 50 and 60c with a 4 year expiry have a huge value. If these options were being sold on market what would their value be? Greater than 10c easily given the long expiry.

Now given the price today prior to the announcement was around 37c we are getting 3c premium on the SP but the options they get are at 50 and 60c with no obligation to convert them for 4 years.

In reality the company could have raised 10m at a slight discount to today’s price with no attaching options and in 4 years time if more funding was required raised at a higher price than 60c resulting in less overall dilution.

All imo but I just don’t believe today’s raise was actually that great for existing shareholders.

If you believe I am downramping I haven’t sold a share since buying in at 18c and still see this as a buy but we have given away a substantial chunck of the company for an average price.