As someone pointed out - the following resolution was approved, although 70m of the 400m have already been issued.
"RESOLUTION 10 – APPROVAL FOR THE PROPOSED PLACEMENT OF UP TO 400,000,000 SHARES FOR CASH CONSIDERATION To consider and, if though fit, to pass the following as an ordinary resolution: "That, for the purposes of Listing Rule 7.1, and for all other purposes, Shareholders approve the issue and allotment by the Company to sophisticated or professional or overseas investors or other subscribers to whom the shares can be issued without a disclosure document of up to 400,000,000 Shares in the Company for cash consideration at an issue price not less than 80% of the average market price (as defined in the ASX Listing Rules) for the Company's Shares calculated, for each issue of Shares which is made, over the last 5 days on which sales in Shares were recorded before the day on which the issue is made.”
This leaves 330m shares.
The last 70m were offered at 1.5c, so our best case is the 330m get offered at 1.5c = $5M AUD.
GMC can then raise up to 15% to shareholders = 15% of 1.4bn = 210m @ 1.5c = $3MAUD
GMC stated that they signed a $14.5M USD EPCM contract, so even if the above is fully subsribed GMC is in a pickle.
And for the third time the 80% applies over the last 5 days on which sales in Shares were recorded before the day on which the issue is made
The SI is very likely going to simply agree to funding in tranches
Tranche 1 will be end of Feb, at either 80% of the 5 day VWAP or 1.5c,
Tranche 2 will be March, at either 80% of the 5 day VWAP or 1.5c
Suspending a share to protect it from falling is not a way to reduce the cost of equity. Otherwise, all shares would be in suspension prior to bad news.
GMC Price at posting:
4.2¢ Sentiment: None Disclosure: Held
