Shares

Shame file: stand alone placements with no SPP


October 3, 2022

The following list tracks companies which shamefully did stand alone institutional placements over the past 20 years years that weren't accompanied by a Share Purchase Plan for retail investors. If we've missed any, please email the details to stephen@maynereport.com.

Acrow Formwork and Construction Services (ACF), 2020: As announced to the ASX, the company raised $10.5 million in a placement priced at 38c, an excessive 11 per cent discount to the prevailing market price. There was no follow up SPP for retail.

Alumina (AWC), 2013:
placed a 15% stake to Chinese company CITIC at a 3% premium of $1.235 with no follow on SPP or access to any institutional investor either.

Aquila Resources, 2009: Chinese steel giant Baosteel to invest up to $286 million for a 15% stake in the company through a placement at $6.50 a share.

Arafura Resources (ARU), June 2020: raised $7m though a placement at 6.2c with no SPP but subsequently did a $40 million placement the following year which did have an SPP component but it was restricted to $5.5m despite $16m coming through the door.

Arizona Lithium (AZL), March 2022: $32.5 million placement at 12.5c with no SPP for retail shareholders. Previous close was 15c but stock rose to 16c on the morning after the raise, so placement participants are well in front but 7,500 retail shareholders have been diluted.

Auteco Minerals (AUT), 2022: did a $20 million placement at 8c to advance its Canadian gold project but failed to offer retail shareholders the same opportunity. Was priced at a hefty 13% discount to the previous close. The offending brokers were Cannacord Genuity and Shaw.

AVZ Minerals (AVZ), December 2021: Perth-based African lithium aspirant did a $75 million placement at 50c with no follow-through SPP for retail.

April 19, 2022: Black Cat Syndicate (BC8): completed a $35 million two stage placement at 55c, a steep discount to the previous close of 68c, to fund a gold acquisition but no sign of any SPP for retail even though some directors are topping up their investments.

Capricorn Metals: (CMM), 2020: $32.3m placement at $1.90, a 7.8% discount to the previous close with the placement comprising 4.9% of issued capitals. Funds needed for gold project expansion. Mayor shareholder Hawke's Point also sold down from 16.7% to 10% at the same price. No accompanying SPP so retail badly shafted.

Carnarvon Petroleum (CVN), 2022: $70 million insto placement at 30c with no follow through SPP for retail investors. Previous close was 33c and this was close to maximum 15% allowable under the placement cap.

Centuria Industrial REIT (CIP), 2020: announced a $125 million placement at $3.06 to fund some cold storage assets but failed to offer retail shareholders an SPP.

Chalice Gold, 2020: announced a $30 million placement with no follow on SPP.

Commonwealth Bank (CBA), 2008: $2 billion raised through institutional placement at $38 a share in October 2008 to fund BankWest acquisition with no accompanying SPP.

Core Lithium (CXO), 2022: announced a $100m selective placement but no sign of any SPP for retail shareholders to participate on the same terms. Was priced at $1.03, a 6.8% discount to the previous close of $1.105.

De Grey Mining (DEG) 2020 (x2): $100 million placement at $1.20 in September 2020, a 16.4% discount to the previous close, with no SPP offered for retail holders. This follows an earlier $31.2 million placement at 28c on April 28, 2020, which also offered no SPP. Two separate placements with no SPP in 5 months. This is deliberate dilution of retail holders.

5G Networks (5GN), 2020: $30 million placement at $1.85 with CEO Joe Demase also selling 3m shares or 15% of his stake for $5.5 million. No accompanying SPP which is disappointing. Stock finished the year at $1.42 so investors underwater.

Fortescue Metals (FMG), 2009: placed 17.4% of the company with the Chinese Government at $2.48 a share raising $645 million in March 2009 but still hasn't offered the same deal to its loyal but unloved retail shareholders.

GenusPlus Group (GNP), 2022: raised $20 million in a placement at $1.21, a 10 per cent discount to the previous close, but failed to offer retail an SPP. The offending brokers were Bell Potters and Hartleys.

Hastings Technology Metals (HAS), 2022: $40 million placement to fund manager L1 Capital at 25c with no follow through SPP for retail investors. This lifts L1's stake to 15.5%. The previous close was 26c, so the discount was 5.7%.

Iluka Resources, (ILU), 2009: did a $114 million placement at $3 a share in May 2009 but failed to deliver retail investors an SPP.

Latin Resources (LRS), April 2022: aspiring Perth-based Brazilian lithium player joined the retail rip off club with a $35m insto placement at 16c but no opportunity for mums and dads to participate through a Share Purchase Plan.

Lend Lease (LLC), 2009: completed a $300 million institutional placement on February 4, 2009 at $6.05 a share to strengthen the balance sheet but the shares then tanked to a 20-year low of $5.50 so they abandoned the SPP for retail investors because there was no VWAP pricing alternative.

Megaport, 2019: In December 2019 it did a $62m placement at $8.70 (a 4.8% discount) with no follow on SPP at all.

Mesoblast (MSB), 2020: completed a $138 million placement at $3.20 a share, a 7% discount, on May 13 2020 but no sign of any follow-on SPP.

Mesoblast (MSB), 2019: The company's 13,000 retail shareholders were excluded from a $75 million placement in 2019.

Minrex (MRR), April 2022: Perth-based lithium wannabe raised $13.5m in a selective placement from various un-named mining executives and other big end of town types but there was no SPP for retail investors.

Open Pay (OPY), 2020: $33.7 million placement at $2.40, a 9.8% premium to the previous close. No SPP offer for retail investors but at least the placement was a premium. Stock finished the year at $2.26 so investors are slightly underwater.

Primary Healthcare, 2007: raised $184.5 million through an institutional placement at $11.90 a pop on November 9, 2007 with no SPP for retail.

Red 5 Mining (RED), 2020: The Perth-based gold miner did a $125 million placement at 18c with no SPP for retail shareholders. This comprised 55.8% of pre-raising capital and therefore needed shareholder approval. Was priced at a 23.4% discount to the last price and the stock was at 21c in mid May so the existing 4800 retail shareholders have been diluted without compensation. Stock finished the year at 26c so investors are well in front.

Red Dirt Metals (RDT), 2022: did a $22 million placement to two offshore specialist resource funds as it pursues a lithium-gold project. The raising was priced at 51c, a 5.6 per cent discount to the previous close, and the broker involved was Cannacord Genuity.

Rex Minerals (RXM), 2021: announced a $50 million placement at 30c, a 16.6% discount to the previous close, but then failed to follow through with an SPP on the same terms for retail shareholders. Macquarie and Euro Hartley were the overpaid advisers complicit with diluting retail investors.

Santos (STO), 2010: $500 million placement at $12.55 in December 2010 with no SPP at all, leading to a board tilt by Stephen Mayne.

Strandline Resources (STA), April 2022: $50 million placement at 43c with no accompanying SPP for retail shareholders.

Tempest Minerals (TEM), April 2022: another day, another dodgy capital raising from a Perth-based miner. They raised $8.4m in a placement to the big end of town, but there was no SPP for retail investors.

Temple & Webster (TPW), 2020: a $40 million placement at $5.70, a 9.7% discount to the last close of $6.31. No wonder it talked about heavy demand. Very disappointing to not have any form of follow-up SPP for retail investors. Stock was at $7.60 in early July so clear lost value and dilution for retail investors who are still waiting for their SPP. Stock finished the year at $11.07 so a boomer for all placement participants.

Ten Network Holdings, 2009: a $138 million placement at $1.15 with no SPP for retail investors, leading to a board tilt by Stephen Mayne.

Tietto Minerals (TIE), March 2022: Another capital raising shocker out of Perth as aspiring West African gold miner Tietto Minerals announces a two stage $130m placement to the big end of town whilst refusing to let retail investors participate through an SPP. Placement priced at 14.5% discount of 50c and second tranche is subject to shareholder approval.

ZIP (Z1P), 2021: the emerging buy now pay later outfit launched a $120m placement at $9.18, a 4.5% discount to the previous close, in conjunction with a $400m zero coupon convertible note, which was similar to what Afterpay did. The two founders sold 2 million shares into the placement. No sign of any SPP for retail.