Would seem like a bit of a low blow to current investors to throw the SP under that much downwards pressure to allocate a capital raise of anything in the 1.2 range though. Might get a bit of negativity from current shareholders.
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Would seem like a bit of a low blow to current investors to throw the SP under that much downwards pressure to allocate a capital raise of anything in the 1.2 range though. Might get a bit of negativity from current shareholders.
My reading of it, so as to be equitable to all shareholders would be as follows: A CR of $70mio is around a 7% dilution based on current SP. NZ shareholders will be offered around that in form of additional shares at the issue price. eg a shareholder who has 100000 shares may be offered the chance to buy 7000 shares at the issue price. If the issue price is $1.20 then the shareholder pays $8400 and ends up with 107000 shares.
Personally I think that an issue price of NZ$1.20 is too low. Peb could easily raise NZ$70 mio with issuing less shares at a higher price especially given the wider pool of funds available on the Australian market
Luckily Snow Leopard took a screen shot for posterity & for the record.
The information posted is too definitive to be fictitious, and the ASX would not have posted it unless it came from a credible source, like from PEB or the brokers representing PEB.
So what happened?
Note 2 critical items on the notice :
1. Expected Offer close date : 10 September 2021
2. Underwriter : Bell Porter, Jarden & Forbar.
Looks to me like PEB was supposed to go onto trading halt yesterday to facilitate the placement
BUT
Something happened which stopped the placement from going ahead.
So what was that something?
I do not buy for 1 second the directors not approving the above deal - $70m is a lot of money to raise for PEB and the company would have been happy to grab the money with both hands.
I think that the underwriters could not get sub-underwriters across the line (could be amount, could be price or could be both) - hence the withdrawal of the CR yesterday.
So it's back to the drawing board to come out with another CR deal imo.
Assuming they raise $70m @ $1.20 = 58.3m new shares
Current shares issued = 729m
Assuming they offered all the new shares to existing holders the ratio would be approximately: 1 new share for every 12.5 held
However, they will probably do a placement for a large chunk of it to get traction in the Aussie market, with a pro-rata offer to existing holders for the balance.
Not saying these are the numbers, but for example: Say a $40m placement which leaves $30m for holders = 25m shares. That equates to about 1:29 held.
There are numerous possibilities about what went wrong but it's pretty clear the problem came from the PEB side.
I posted this earlier:
"An updated report in today's NBR on the Pacific Edge confusion contains the following:
"An ASX spokesperson told the Australian Financial Review: "The application, which included the capital raising, was lodged and the information published in accordance with ASX's standard process when it receives listing applications".
A broker usually facilitated the CR & ASX listing so it is not necessarily PEB’s fault.
What is clear as I wrote in my previous post is that something went awry with the CR.
PEB should have been in trading halt first thing yesterday morning to facilitate the placement.
Hope it’s not a case of the Australian institutions invited to sub-underwrite having a look and deciding the CR is not for them.
Charts are always interesting... perhaps providing insight? ('We are but pawns in someone else's game' is a phrase that comes to mind)
Attachment 12942
A mere clerical slip up at the end of the day... Doesn't change much other than providing folks with some excitement. The companies path is still the companies path.
obviously the bad taste lingers in the mouths of current and possible PEB S Hers, how and when this "taste " disappears is a matter of interest to all atm !!
I've scaled down my holdings for now in the last 3 days which was quite painful to let go but I was disappointed with the lack of clarity on how and why the error happened. I don't care who made the error but as a public company it was PEB's responsibility to find out and report to the market more details. I think just saying "the information was incorrect" twice does not give any clarity. I'll still apply for a big portion if they do offer at a later date.