becoming substantial holder - ubs, page-52

Dis, I don't agree with your theory that a cap raise is inevitable because I see it likely that we will be able to draw down on our current debt facility and obtain further facilities quicker than perhaps is being envisaged by the market.

Even if you were correct then just because there was going to be a cap raise it isn't as simple to imply it would go off cheaper than the current share price. I have been involved in advising a number of companies over the years different strategies for accumulating shares in target companies and I think in this case there is a far better alternative.

If we first assume that that two or more of our substantial holders may in fact be "holding" for the same final entity (which would seem plausible given each of our substantials have seemly taken turns at accumulating in exactly the same style and without jumping over each other. Then I would be advising that they approach the company saying the would be willing to underwrite a cap raise ABOVE the current market - say 78c. Then DP thinks he has done a great job - of course no shareholders take up their allocation so these guys manage to get a further 10-15% of the company in one foul swoop and only a few cents (after underwriting fees) above the current market. Because the company managed to raise the funds above the current market price and it would definitely be seen as the last cap raise then this would be seen as the catalyst for the aggressive move higher in price....basically a massive win/win for the accumulators.

THAT in my opinion is how to ultimately complete the stealth accumulation that has been taking place and leaves the holder with a significant share of a company which is looking in great shape.

Not saying that is being the theory being followed here but just posing a different (and I think better) strategy than those suggesting a CR implied us going to 52c.

There are many ways to skin a cat.