RE: Noble Helium going it alone1 Jun 2023 01:52
Sometimes I wonder why I bother, especially when I get quoted with the Motley Bl00dy Fool, who imho are expensive providers of poor advice for the numerically and intellectually challenged.
* There is a difference between a rights issue and a SPP. With a rights issue, every shareholder is offered shares in direct proportion to their existing holdings (i.e., one new share for every five currently held), whereas an SPP offers shareholders a choice of bundles of new shares ($1000 worth, $2500 worth, etc,). It won't be a rights issue, since there is no point offering large amounts of shares to the majority shareholders such as Justyn Wood, when it is exactly those people who were prepared to dilute their effective holding by a farmout, and crucially, a rights issue allow does NOT allow you to offer shares to new potential shareholders. You cannot do a simultaneous rights issue and placing.
* It won't be an IPO, since it is NOT an IPO.
* The only other ways to raise capital are a placing and SPP, which can and frequently are done together, which is what I have just said will be done. This is the norm on the ASX, since it allows you to:
* bring in new shareholders
* allow large holders to take parcels of shares of any size, including more than their existing holdings
* keeps small private investors happy by enabling them to avoid dilution, or even increase their holdings at a discount.
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