I'm not a lawyer, but I have found that it is useful to run a few hypothetical's which would seek to exploit the same methodology to understand what might happen should this need to be argued in court.
If for example the non-renounceable entitlement offer was on the basis of 6:1 you could potentially issue (373,076,993 x 6 = 2,238,461,958 plus the original 373,076,993 = 2,611,538,951 x 15%) 391,730,842 new shares as an institutional placement. Pretty much any controversial motion would be carried.
You can also issue new shares at up to a 25% discount, so rather than a takeover premium theoretically it would be at a discount.
Yeh I'm with you on this one, it certainly doesn't pass the pub test and could well upset both ASX and ASIC.
MRM Price at posting:
23.5¢ Sentiment: Hold Disclosure: Held
