Wow , wow, just wow??/ I know it all looks simple but they...

Wow , wow, just wow??/

I know it all looks simple but they didn't just issue 20% more shares like you say. They actually got cash in but they did give away options.

So just to be clear . It was pumped coming up to raising. Raising was then done at a discount to pumped price ( both in price and by extra dilution of extra free options). So depending on what way you want to look at it and what way you place a price on options you can determin the discount.

The stupidity or not including "amended"in the second announdement on 25th with teh extra info is just poor form by ASX . AEB. The reality of $204,000 plus fee shares plus free options just shows how hard it was to get issue away and discount they had to to to get it away. It is almost misleading IMO.
I am assuming there will be no further corrections.

"The anticipated use of funds (after deducting raising costs) is as follows:
o Algae Energy (Atlanta) - Product Development Costs $2.006m
o Medicinal Cannabis License Australia - Associated Costs $0.165m
o Algae Energy (Atlanta) - Debt Reduction $0.125m
o Total $2.296m"

So this says they raised $2.5 mill and it cost them $204k cash to do it.

"
 AEB will be issuing 62,263,422 placement shares from its available capacity under the approval previously obtained from shareholders under ASX listing rule 7.1A, 236,578 placement shares from its available capacity under listing rule 7.1, and 7,062,500 shares in payment of raising fees from its available capacity under listing rule 7.1. AEB will be issuing the 62,500,000 attaching placement options and 5,812,500 options in payment of raising fees from its available capacity under ASX listing rule 7.1. Following the issue, AEB’s capacity to issue equity securities under ASX listing rule 7.1 without shareholder approval will be 9,570,556 equity securities, and AEB will have exhausted its capacity to issue shares under the approval previously obtained from shareholders under ASX listing rule 7.1A.


Total new shares issue 69,562,500.
net $ raised $2.296,000
so average is $0.033006 with 68,312,500 free options thrown in ( not quite 1 for 1 as 1,250,000 less options than FPO) .

So 3.3cents for FPO and take away approx 1.3c for option value and you get back to my estimated 2c issue price?

So if anyone wants to argue the maths please put up your full workings workings.


Remember this company has convertible note debt at 10% interest and also discount to VWAP on expiry and there may also be condition that make it due in regards to cap raisings or other triggers like change of business. Look closely at who the debt was issued to in related party transactions.

possibly 4.5 mill shares to be issued in 26th July from convertible if they don't pay back cash - odd if they didn't but dilute holders or spend precious cash?? hmmm