<ul data-eligibleForWebStory="true"><li>Ugro Capital is facing scrutiny over its cash return structure for a fund-raising round involving CCDs and a rights issue.</li><li>Investor advisory firm IiAS has raised concerns that the structure unfairly compensates warrant holders.</li><li>The fund-raising began in 2024 with warrants and CCDs but faced scrutiny due to share price drops below conversion prices.</li><li>In 2025, Ugro proposed a rights issue and CCDs issuance with terms favoring non-conversion by warrant holders.</li><li>The additional interest for not converting warrants raises questions of shareholder treatment equality and potential losses.</li><li>Ugro claims CCDs are not linked to warrants legally, but IiAS points out potential impacts on profitability.</li><li>The coupon payout from the proposed structure could exceed Ugro's FY25 pre-tax profit.</li><li>Ugro's response regarding the link between CCDs and warrants raises further questions about the structure.</li><li>E-voting for the postal ballot on this issue closes on June 19, 2025.</li><li>The high-cost and high-dilution equity raise strategy by Ugro has raised eyebrows in the market.</li></ul>

Why Ugro Capital's CCD Issue Is In The Eye Of An Investor Storm

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