Fully-underwritten Entitlement Offer to raise $1.46 million 

The capital raising will support ReadCloud on its pathway to positive EBITDA and positive operating cashflow expected in FY24

Fully underwritten

Sub underwritten by management to the tune of 500k

It seems the price per share was omitted (very confidence inspiring).

The Rights Issue offer price represents a discount of:

19.0% to the 10-day Volume-Weighted Average Price (“VWAP”) of the Company’s shares; and

8.6% to the 20-day VWAP of the Company’s shares. 

1 share for every five currently held and a "free" option for every 2 new shares subscribed for exercisable at $0.10 with an expiry in 18 months.

Thoughts:

Hmmmm, so I knew they need to raise, if they were going to raise my preference is a rights offer as its equitable to smaller existing shareholders. I get the impression management will subscribe. Overall could be worse, who knows might even get them through to cashflow positive (I won't be holding my breath though).