Share Raising, page-2

Well I said they may need to raise 500,000,000. I didn't say they would. Also I didn't give a timeframe. Several weeks ago I said they'd need to raise additional funds within the 12 months. The release of the AGM criteria has confirmed I was right on that one.

500,000,000 shares issued at 0.7c, which is probably the price they would cost at the very least would raise $3.5million. When you consider Mobile Embrace raised > $11 million to support their growth plans for what has proven to be a very low cost growth company and Mint Wireless has raised approx 10M for what is a significantly more expensive growth, $3.5 million doesn't look to be much. Over a 2 year period, I would suspect that $3.5 million would be the minimal amount needed to push forward with a new product in the mobile payments space, it might not even be sustainable. First the product has to be rolled out, integrated into whatever and then you need advertising. None of that will be cheap and I suspect it would require at least 5-10 million to for a mobile payments platform to start generating sufficient cash flows that may in time be generating net profit - that is based loosely on MNW and MBEs investments to date.

What I am saying is that I see them probably need to raise further cash. They have approx. $2million in the bank. If they were to launch a new product, that would certainly be eaten up within a year depending on the progress of the products roll out. I can't see them generating significant cash from their mobile payments product in the first year to be able to support organic growth. If it was that easy, everyone would be doing it - and indeed there is a lot of competition in these spaces.