First Graphite - breakthrough in graphene production!, page-29

Thanks for clearing that up.

I do, though, have a problem with the idea expressed earlier that FGR will not need any more capital between now and May next year (10 months from now).

In the same period this year, FGR had expenses of $4,110,080 (excluding costs of raising funds) in the three quarters up to 31 March 2016.

By my calculation there is around $3.2 million in kitty at the moment, at a time when the company is planning to be very active. From a recent announcement:

"FGR's strategy involves developing a number of shafts concurrently, enabling it to ramp up production in a number of locations"

Earlier information suggested a target of twenty shafts within 2 years of initial development.

On top of this, there will be higher costs associated with developing markets and licencing, developing partnerships with potential users, etc.

There will be some income from sales, hard to put a figure on it.

I doubt that there will be a buffer of funds sufficient to get through to May 2017, and the last thing the company needs during this expansionary phase is a restriction in capital.

So I think there needs to be another injection of funds before then.

The question is - would it be better to get the capital from exercise of the OA options, or organise another CR to "sophisticated investors" ?

These OA options were issued during the SPP that refinanced the company to establish it's operations in Sri Lanka. A key purpose of options issued during a SPP is to encourage the loyalty of long term share holders, and give them a bonus for providing funds at a crucial time in the formation or development of a company when risk is higher.

It would be my contention that if it is achievable, rewarding those long term, loyal supporters, allowing them to retain an undiluted holding (or even increasing their proportional holding), is preferable to inviting in more "sophisticates" when risk has been reduced.

The two largest OA option holders are Craig and Peter (two founding directors and key management who have driven this enterprise to where it is now. Many more are held by top twenty and other significant long term funders. Would be great to see them rewarded.

And just to cover off my motivations - I can disclose that I have a solid number of head shares, as well as parcels of both options. The OA's I accumulated before the SPP that launched the listed OB's,(I took a full part in that most recent SPP, so picked up a parcel then) . I still add more when they are at a tempting price. Doesn't seem to be much risk with the OB's. (note the 3B announcement yesterday where some confident person has already exercised 250,000 !).

So I am hopeful, - both on a personal basis, and to see the loyal long termers rewarded, - that there is a strong rerate of the share price before October 17th.

There is plenty of expectation that the progress of FGR during this time will provide enough evidence to support and help generate such a rerate.

But remember, if you are thinking of buying OA options at this stage, only spend money you can afford to lose. If they are not "in the money" by Oct 17 (i.e. the FGR head shares are 20c+),
you will suffer a total loss on those.

So please DYOR.