Ann: Entitlement Issue Prospectus, page-16

Fair question, johnyb26. When, indeed, did the management team last buy?

But there are a couple of other concerns about the prospectus. It looks like GMP Securities have been hung out to dry. From the fact that there have been no other underwriters who have put their hands up, it's a reasonable guess that GMP have not been able to hive off any of the responsibility for their slice to any sub-underwriters. That means they are up for the whole $4m.

So where does that leave things? First, it means that they will probably be rather anxious to get back some of that money ASAP, which does not augur well for the SP in the months following the issue.

Second, if nobody joined them as underwriters, or even sub-underwriters, we see something less than a vote of confidence from the instos. If the instos won't buy, why should a private investor do anything other than wait until the last minute to decide whether to take up entitlements? There has to be a real chance that the price could drop even further, allowing him to buy on market at substantially less than $0.15, while holding a Get-out-of-jail-free card to take up the issue at $0.15 if the price should jump (and if he thinks that GMP will not want some of their money back in the short-to-medium term.

Is this a reasonable scenario?

Those 300-odd drill holes with no data at all, and with virtually all the others with incomplete data, don't help. When is TON going to pull back the tightly-drawn curtains? They leave the instos uncertain. And while they are uncertain, they are very likely to sit on their hands.

Cheers,

Prime1