The issue for 6.8mln shares @0.3cents and free options on basis of 1 option for 2 shares (3.45mln shares) was on 22 dec 2015. The next issue was on options on 27 May for 22.3mln shares at 0.065 plus free options on the basis of 1 option for 2 shares (11.153mln shares). The capacity under asx listing rules 7.1 and 7.1A was fully utilized for the first issue and options and second issue of shares, this allows the company to issue 15% and 10% without going to share holders. The options for 11.153 are not under this hence why the company is now looking for shareholder approval. However they are also asking shareholders to now approve the original issues, which resets the clock and allows them to issue again without seeking shareholder approval.
However if shareholders approve this now, then guess no issue as they would have approved in first place. My concern is why the company did not offer existing shareholders the new shares? and then have gone external on the basis of too difficult to get shareholder approval. Now they turnaround and ask for shareholder approval!
CAZ Price at posting:
7.1¢ Sentiment: Hold Disclosure: Held
