Just had a look through the 3DP AGM notice and saw resolution 8 on p21 for 12m Options granted to Lynx for Corporate Advisory Services...
https://www.marketindex.com.au/asx/3dp/announcements/notice-of-annual-general-meetingproxy-form-6A1234217
AGM is 5pm Fri 29th Nov - the last possible moment (and no virtual option for those without easy access to Subiaco), but that shouldn't surprise, the best ones always go last ...
This resolution is to place with Lynx 1.5% of Share on Issue. Exercisable at $0.06, so effectively raising $720,000 (and then spending it straight away) if the price gets there (20% uplift from here).
It's a lot of capital to be paying away for 12 months of advisory services (that's already started), so what do shareholders get for it?
"The advisory covers investor awareness, investor engagement, introductions, strategic capital advice and other general advice."
"The Company agreed to reimburse Lynx for all reasonable out-of pocket expenses incurred in connection with provision of services under the Mandate, with approval of the Company required for any single expense in excess of $500."
My thoughts
This seems a little desperate to me.
They must fear another damaging cap raise around the corner - App 4C due out tomorrow, after close most likely.
So they just paid 1.5% of the company to (among other things) get connected to cap markets players for a potential equity raise - which will then pay Lynx a further 6% of any such raise.
So 3DP is aware of the potential need to raise capital and this will cost 6% + 10%? of any amount raised. They're effectively taking about 85c in the $ of any Cap Raise on this basis.
Didn't they get a vulture capitalist on their board who should be across this sort of thing - or are these his cronies?
A reminder of the importance of management in smaller companies...
Disc: No longer held