I think the level of dilution is not anything to be concerned about here......this is only a small capital raise of $2 million.
The shares issued under the capital raise represents only about 10% of the diluted shareholding (64.5 million shares out of 603 million shares on issue after completion of the RTO) or 7% of fully diluted shares after all performance shares have been converted (64.5 million out of 896 million shares).
For all performance shares to be issued requires total revenues of $15 million or more. If revenues are as high as this I can assure you that the shareprice will be significantly higher than the current 6 to 6.4 cents per share.
This is a company where the shareprice will ultimately be based on revenue coming in and actual earning capacity....and Alcidion, unlike the vast majority of "Unicorns" out there already had real revenues of over $5.1 million coming in the door in the 2015 year (up 36% from the 2014 year).
Finally, if Patto clients will take a 100% gain if it is on offer......would this not mean that based on an issue price of 3.1 cents, that the actual sale price will be 6.2 cents? I don't understand how the share price will drop back to the issue price of 3.1 cents. This would mean that the Patto clients would make a 0% profit.........do you really believe they would even bother?
NRR Price at posting:
6.4¢ Sentiment: Buy Disclosure: Held
