Ann: Trading Halt, page-11

"Placement price is quite high I think, instos are probably likely to cash in at the issue price or thereabouts and make hay with the free option." - I think there isn't enough liquidity for them to cash in and not make a loss.


I am a bit relieved with this cap raising, as it gives the company that extra bit of room to make it through to breakeven. No guarantees that they will with what they have now, but it improves their odds quite a lot.

With regards to the part subject to shareholder approval:
"Pursuant to the Placement, all of the directors of the Company including the CEO and CFO (either directly or through their associates) agreed to subscribe for a total of 5.9 million New Shares. The issue of New Shares (and free New Options) to each of the directors (or their associated entities) will be subject to receipt of approval from the Company's shareholders ("Shareholder Approval"). Shareholder Approval is expected to be sought at an extraordinary general meeting of the Company to be held in early 2018."

Normally I would be a bit miffed with this, given we are only able to kick in up to $15,000 through the SPP which is subject to a potential scale back, but it is good to see the directors, CEO and CFO getting a bit more skin in the game.

I'm not sure of the willingness of everyone to participate and tip in another $15k, but I would be very surprised if they company chose to scale back in any circumstances given their history of difficulty raising cash.

With high cash burn, early stage growth companies, I think everyone should take Rod Drury's advice (Xero), whom I think said that you should raise more money than you need, and way in advance of when you actually need it.