Bring balance to the for(ce)um, page-72

If we look on a chart 65c is just below the mid point trading range we've been in pretty much all this year, so ive no problem with that.  The only thing id question is the warrants, we dont really need the money now so one would certainly hope in 3 years times the company is well past needing cash injections. That said it'll only be around and extra 7m shares which will be minor in the big picture.

I think many of us were surprised in the size of the CR more than anything. However we shouldnt ignore the main reasons for it, as stated:

1. Accelerate the further development of the Company's core environmentally friendly chemical technologies into the fire retardant building materials sector;

2. Support the fulfillment of anticipated significant US DoD and commercial sector sales contracts; and

3. Expand our footprint and capability in international markets outside the US

The number 1 reason given is to expand into our FR into what should be a very lucrative industry. Come listing time we should at least be well advanced down this path, hopefully with a number of irons in the fire and or a contract or 2.

No2 if DoD is expanded well beyond FRACU which appears is the DoDs aim here then that would likely have effect on our cashflows short term. We may well have had everything covered for just FRACU with reserves we had but the game has changed. Its a massive positive but requires greater initial investment particularly to cashflows.

No3 is still a bit of a mystery. Im assuming its the Asian manufacturing for the tent contract. We dont atm know how much if any this expanded the tenting contract. We'd have to assume its significant to make the investment, not only that but, the tenting manufacturers customer requesting this must be buying (re-selling?) big numbers to have the clout.

Come IPO time we should be in a much stronger position than if we just tried to get through with the 4-5m we had. Each one of the 3 above points should payback many multiples of the dilution we cop.

Ive no doubt we wouldve got to these expansions/ new markets eventually without a big CR but it appears the market is there NOW and this is about fast tracking and capitalising on our first mover advantage.

Then as others have mentioned, it brings US investors onto the register. We dont who exactly they are, they could be players in the industry or legislation process as far as we know - which could explain the warrants.

From my perspective the CR and its size surprised me but at the end of the day Nick and the team have done brilliantly to date - im not about to second guess them now. They're at the coal face, they see new clients and opportunities first hand. Im sure all LT holders will do very well should all 3 points pay off, just point 2 alone could justify the CR.

I appreciate everyone's risk profile is different, we all see things differently and certainly agree we shouldnt just have blind faith in any investment. If some people are losing faith in the company, the management ect they should lighten up or sell up altogether. For me management have runs on the board, i can see logical reasons why we might need the funds, so ill continue to back them until i see reason not to.