Forum Topics 4DX 4DX ASX Announcements

Pinned straw:

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thunderhead
11 months ago

Shame the raise comes with a 30% haircut from the recent highs.

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secondtake88
11 months ago

My mail is that the 'material commercial arrangement' is a contract with the US Department of Defence (!).

The raise to be at 91c .. and open to retail .. not sure on size .. my guess $30m .. good times !

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thunderhead
11 months ago

Don't like the discount, but again, if it is in support of the material contract (DoD is a solid client!), it should work out in the fullness of time.

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secondtake88
11 months ago

Thunder, my guess is that it will work out the same day. It will be hugely oversubscribed and for good reason.

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thunderhead
11 months ago

We'll have to see if the price retraces to those levels. That won't be great after all the hard-won gains recently.

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thunderhead
11 months ago

Didn't have to wait too long for the price to hit those levels. Oh well, let's hope the funds raised are used to successfully execute for the marquee client names, and expand revenues significantly over the coming year or two.

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secondtake88
11 months ago

It hasn't hit the raise level as the raise includes a 1 for 2 option which (I think) will be worth at least 7 or 8 cents.

Well here we are - back to the offer price, which I have to admit does surprise me.

Here is a handy calculator for working out the value of an option.

https://goodcalculators.com/black-scholes-calculator/

Note that this is for European style options whereas 4DXO will be the more valuable American style.


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Rapstar
11 months ago

Options have a strike price of $1.365, so they are currently out of the money, and have no value.

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secondtake88
11 months ago

4DX - not to forget that:

The SPP will be offered at the lower of:

• A$0.91 per share; and

• a 2.5% discount to the VWAP of shares traded on the ASX during the five trading days up to the closing date of the SPP, rounded to the nearest half cent. 

That period starts tomorrow Wed 17th May.

So yeah, throw in half an option and this will be very well bid & the cheaper the better.

They've already banked the $20m from instos at the higher price. The $15m from shareholders might be a couple of months of runway but they might in fact not need it.

This could be, in fact, the last raise.

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secondtake88
11 months ago

Hi Pinch of Salt,

The exercise terms are exactly the difference between the option types.

Check https://www.investopedia.com/articles/optioninvestor/08/american-european-options.asp

You are correct about the application of Black Scholes, which is what I said as well.

However the American style option is always more valuable than the European style option.

It's over and out from me on this topic.

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