Ann: Prospectus, page-80

Sorry,

I'm still struggling with the way this has been portrayed.

The way I see it is:



So assuming all the notes and options are converted (say the share price is 0.06 in 36 months at the note expiry - so all are converted at full price), we end up with 2.9 billion shares.

   That's a lot of shares.

So, as a reward to a shareholder, you need to increase your shareholding by almost 50% (in shares and ops) to maintain your dilution level.

Maximum is $15k - 454,545 shares and converted options, all for a total cost of $37,727 over the next two years.

Furthermore, you begin with the noteholders games if the SPP has not moved too far - in pushing the price down to get more shares issued on conversion The 800,000,000 is at 5c, but is the sp is lower, they get more shares. One would hope that this is beyond the scope of the sp by then, but you never know - I've been through it before.  

I realise that issuing a prospectus is an exercise in pleasing the powers that be - but the other peculiarity is the lack of real comment regarding the conversion of options (if they are in the money) - another $16.8M into the company coffers - more than the rest raises.

So, in total, we are looking at issuing over 800,000,000 shares for a total of some $34M over two years.

  That's a lot of shares.  Did I say that before?