To me It looks more like they were concerned that issuing shares...

To me It looks more like they were concerned that issuing shares to a mate a day or so before a major announcement on a partnership deal might get them in a spot of bother with ASIC on insider trading rules. Maybe I'm reading a little too much into it, and it was all just bad timing on the boards part. It's a micro cap, They need cash and managed to secure something through a related party, then just before they pull the trigger on releasing the details they get a partnership offer from someone. At any rate I don't think this is as simple as not being able to raise the capital from Sophs. If it was I doubt they will be using the same investment bank/broker again.