Very surprised by this. Based on half year EVZ ash flow...

Very surprised by this. Based on half year EVZ ash flow positive, had sufficient room to move, and no indication borrowings needed to be repaid. CBA loan has been renegotiated on favourable terms. In addition directors purchases few weeks back. Companies can raise up to 25% of capital through placement so this can't be to fully repay CBA. Taking this all into account I think placement is to. 1. Repay director loans which I think are around 600k. 2. Get funding for significant contract / acquisition. 3. Some institutional investor wants in and can't via illiquid market. Whichever of above, don't expect raising to be below 2.4cps, and don't expect too much downside on share price. For a company like EVZ I would prefer more funds and less risk.