EOL have organised a Q&A session on their capital raise at 11:00 (AEST) on Wednesday 21st September 2022

EOL_EOL_Capital_Raising_Investor_Question_and_Answer_Forum.pdf

Hopefully some of the questions may be answered in this.

Isn't it a bit of a red flag to pay a dividend and then raise capital at the same time. I get this is probably a timing and cashflow issue but not the best capital management, given they also have debt of 27M.

Dividend of $0.06c with a pay date of 28/10/22, pay out $1.65M (0.06x 27.5M SOI), the DRP is $5.16, so I doubt much will get given back given the cap raise is at $4.50.

Cap raise of $7.5M for -Funds raised under the Capital Raising will be used to settle deferred consideration amounts payable to the sellers of Egssis NV and CQ Energy Group and fund transaction costs, with remaining amounts being used as working capital to provide balance sheet support. The capital raising further allows for operating cash to be invested into Global Operations capability as detailed in EOL’s Investor Presentation of 23 August 2022

I guess I am a bit surprised that firstly they would do this, and secondly that if they did why they wouldn't have raised a larger amount given they like doing M&A and the future is anything from certain at the moment. It will be interesting to see whether it is oversubscribed or not.